Aramex Sustainability Report 2006
Aramex Sustainability Report 2006
Aramex Sustainability Report 2006
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SUSTAINABILITY<br />
R E P O R T 2 0 0 6
Table of Contents<br />
Note: In this PDF file, the Table of Contents and all page references in the report function as links;<br />
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PAGE CONTENT<br />
1 Table of Contents<br />
2 Mission, Purpose, and The <strong>Sustainability</strong> Opportunity<br />
3 <strong>Sustainability</strong> Performance Snapshot<br />
5‐9 Overview of <strong>Aramex</strong><br />
9‐12 <strong>Report</strong> Profile<br />
13‐14 Letter from the Founder and CEO<br />
15 <strong>Sustainability</strong> Philosophy and Framework<br />
16‐17 Stakeholders – Who, How We Engage, Key Issues and Responses<br />
18‐19 Key <strong>Sustainability</strong> Issues and KPIs with 3‐year and Long‐Term Goals<br />
20‐22 Governance, Ethics, Management Systems and External Commitments<br />
23‐24 Memberships<br />
25‐27 Disclosures on Management Approach<br />
28 Creating Economic Value<br />
29‐34 Our Contribution to Economic Growth and Development<br />
35 Creating Social Value<br />
36‐41 Our Customer Relationships<br />
42‐58 Our People: Human Resources Developments<br />
59‐65 Health, Safety and Security<br />
66‐70 Our Cities: Urban Impacts<br />
71‐79 Our Communities: Investment in Society<br />
80‐82 Our Business Partners and the Global Distribution Alliance<br />
83 Environmental Leadership<br />
84‐91 Our Planet: Climate Change, Environment, and <strong>Sustainability</strong> Innovation<br />
92 Catalyzing <strong>Sustainability</strong><br />
93‐94 Catalyzing <strong>Sustainability</strong> Where We Operate<br />
95‐97 Looking Forward – Summary of Commitments<br />
98 Independent Assurance<br />
99‐101 Assurance Statement<br />
102 Supporting Resources<br />
102‐103 GRI Index<br />
104‐105 Glossary<br />
106 Acronyms<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 1
<strong>Aramex</strong> is a provider of international and domestic express package delivery, freight forwarding, logistics and<br />
other transportation services<br />
Our Mission<br />
To be recognized as the 5th global logistics and express transportation service provider in the world by the year 2010<br />
Our Purpose<br />
To enable and facilitate regional and global trade and commerce<br />
The <strong>Sustainability</strong> Opportunity<br />
Our definition of sustainability management is the integrated development and growth of our economic,<br />
environmental, and social performance in a manner that optimizes value for all of our stakeholders. We believe the<br />
concept of sustainability holds tremendous opportunity for our company and our stakeholders, and for our world.<br />
For <strong>Aramex</strong>, sustainability means:<br />
� Recognition as an outstanding place to work. We aim to be recognized as a top employer wherever we<br />
operate<br />
� Becoming recognized as the 5th global logistics and express transportation company, playing a major role in<br />
facilitating regional global trade and commerce<br />
� Continuously enhancing and developing new services, including sustainability‐oriented service innovations<br />
such as zero‐carbon shipments<br />
� Strengthening the communities in which we live, in particularly aiming to reduce marginalization and<br />
respond to urgent and ongoing humanitarian crises<br />
� Becoming carbon neutral, i.e. having zero net emissions of greenhouse gases which are warming our<br />
planet. We aim to be the first "total transportation solutions provider" in the world to achieve this<br />
� Aiming for zero safety incidents – zero accidents, zero injuries, zero fatalities<br />
� Reducing our urban impacts, particularly congestion and noise, and contributing to road safety<br />
� Being a recognized leader in catalyzing the uptake of sustainability in the Middle East and Gulf, and<br />
maintaining continued sustainability leadership and innovation in the region.<br />
We are convinced this is the future direction of business. We aim to be pioneers in the Middle East and Gulf, and<br />
ultimately earn our place among the world’s leadership companies. These are dramatic targets. But our track record,<br />
combined with our culture, suggest that we can and will ultimately achieve these objectives.<br />
<strong>Sustainability</strong> will transform the way we think about our business. It will lead to new types of services, new levels of<br />
understanding, new ways of collaboration, renewed respect for our place in the world, and a profound commitment<br />
to environmental preservation through sustainability innovation, all of which will benefit shareholders and<br />
stakeholders alike.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 2
<strong>Sustainability</strong> Performance Snapshot<br />
Business success and profitability requires the management of a wide range of stakeholder considerations across<br />
economic, environmental, social and ethical dimensions. Here is a snapshot of our performance:<br />
<strong>Sustainability</strong> Issues Our Priority Indicators Performance<br />
2004 2005 <strong>2006</strong><br />
Governance<br />
Governance % of independent directors N/A 87% 87%<br />
Creating Economic Value<br />
% of women directors N/A 0% 0%<br />
Our Shareholders Profit 12.957M 20.259M 25.928M<br />
Growth in profit 29% 56% 28%<br />
Brand ranking (1) Our Direct Economic Impacts<br />
NA NA 13th<br />
Economic value generated<br />
Economic value distributed:<br />
Revenues 188.7M 232.5M 371.3M<br />
To Suppliers Operating costs / total procurement 133.4M 158.7M 266.2M<br />
To Employees Wages and benefits paid 40.89M 51.92M 76.85M<br />
To Providers of Capital Interest expenses 233.2K 243.6K 901.0K<br />
To Governments Taxes paid 881.9K 1.069M 1.208M<br />
To Communities Total $ value of donations to society 357274 345075 220362<br />
Creating Social Value<br />
Revenues less distributions 12.957M 20.259M 25.928M<br />
Our People: Unleashing Talent People employed 2954 3934 5823<br />
Average training hours per employee<br />
Workplace equity<br />
NA 8.5 8.45<br />
% female workers 13% 13% 13%<br />
% females in senior management (Level 1) NA NA 0%<br />
% females in middle management (Levels 2<br />
and 3)<br />
NA NA 10.40%<br />
Turnover rate 21.70% 19.50% 12.70%<br />
Our People: Health and Safety<br />
Fatalities (2) 5 1 1<br />
Absentee rate 0.50% 0.40% 0.39%<br />
Our Customers % on‐time delivery NA 88% 94%<br />
Our Business Partners/ Supplies and the<br />
Global Distribution Alliance<br />
Our Society ‐ Reducing Marginalization<br />
Overall customer satisfaction (Survey 2004) 95% N/A N/A<br />
GDA On‐time payment (approx) 90% 90% 90%<br />
% of pre‐tax profit invested in community 2.58% 1.76% 0.81%<br />
Environmental Leadership<br />
Our materials footprint (3) Fuel consumption ‐ diesel (L) 3,444,251 3,815,390 5,275,432<br />
Fuel consumption ‐ unleaded (L) 2,020,897 2,373,828 3,284,388<br />
Fuel consumption ‐ leaded (L) 539,444 641,693 778,498<br />
Water consumption (cubic meters) 463,890 563,930 957,957<br />
Our Cities: Traffic, Congestion, and<br />
Urban Pollution<br />
# of stations using routing technology N/A N/A 2<br />
* Any financial amounts are reported in US dollar<br />
* M: Million / K: Thousands / L: Liters<br />
NA = Not Available / N/A = Not Applicable<br />
(1) “Top 40 Arab Brands” by Forbes<br />
(2) 13 stations reporting, representing 55% of revenue<br />
(3) Fuel: 22 stations and TwoWay reporting, representing 77.38 % of revenue<br />
Water: 31 stations representing 72% of revenue<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 3
OVERVIEW OF ARAMEX
Overview of <strong>Aramex</strong><br />
<strong>Aramex</strong> is a provider of international and domestic express package delivery, freight forwarding, logistics and other<br />
transportation services primarily to, from and within the Middle East and South Asia. <strong>Aramex</strong> has recently expanded<br />
its presence in Europe by acquiring TwoWay Vanguard, a logistics and freight service provider that has offices in the<br />
Netherlands, Ireland and the United Kingdom.<br />
Since its inception in 1982, <strong>Aramex</strong> has expanded its station/office network to include more than 240 locations in 35<br />
countries with over 6,000 employees as of March 2007.<br />
Services<br />
<strong>Aramex</strong> prides itself on providing ‘total transportation solutions’ to its customers by offering a wide range of<br />
standard services in addition to unique and customized products, all under one roof. The main products and services<br />
of <strong>Aramex</strong> are:<br />
� International Express Delivery<br />
Express shipments consist of small packages, typically ranging in weight from 0.1 kilograms to 50 kilograms, with<br />
time‐sensitive delivery requirements. <strong>Aramex</strong> offers its international express delivery services to both retail and<br />
wholesale express accounts and offers its customers the ability to track their shipments on the World Wide Web<br />
through the company's web site (www.aramex.com).<br />
Retail express delivery customers include trading companies, pharmaceutical companies, banks, service and<br />
information companies and manufacturing and regional distribution companies, and are not concentrated in any one<br />
industry. Wholesale express delivery customers consist primarily of: (a) members of the Global Distribution Alliance,<br />
and (b) express delivery companies with express packages that have an <strong>Aramex</strong> destination and require <strong>Aramex</strong>'s<br />
network to deliver their shipments. The end‐user remains a customer of <strong>Aramex</strong>'s wholesale client.<br />
� Freight Forwarding<br />
<strong>Aramex</strong> offers a wide range of freight forwarding services including air, land and ocean transport. Forwarding of<br />
loose cargo or consolidated freight, warehousing, customs clearance and break‐bulk services and inter‐modal<br />
transportation such as air/land, sea/land, etc, are some of the additional services on offer from <strong>Aramex</strong> today.<br />
Freight shipments typically have gross weights in excess of 50 kilograms on average. These require more specialized<br />
handling and are normally less time‐sensitive than express shipments. <strong>Aramex</strong> provides full "door‐to‐door" services<br />
from, to and within the Middle East and South Asia, and last year we added an important part of West Europe to this<br />
service cycle by acquiring TwoWay Vanguard in the Netherlands, Ireland and the United Kingdom. A significant<br />
portion of <strong>Aramex</strong>'s freight forwarding business involves consignee sales (or routed imports) and, to a lesser extent,<br />
exports by air, ocean and land modes.<br />
We launched our freight forwarding business in 1987 out of selected stations, and from 1993, at every <strong>Aramex</strong><br />
station in the <strong>Aramex</strong> network. Whereas express shipments in the <strong>Aramex</strong> network virtually always pass through one<br />
of its international hubs or gateways, freight forwarding shipments are routed directly from origin to destination on<br />
board the operating carriers that are active on these routes or on the wings of the commercial lift available on city‐<br />
pair basis around the globe. Usually the freight route is selected to best suit the size, weight and time‐sensitivity of<br />
the shipment on hand.<br />
In <strong>2006</strong>, <strong>Aramex</strong> continued to expand the ground transportation portion of its freight forwarding business. Ground<br />
transportation shipments typically consist of a wide range of materials ranging from heavy‐weight packages, high‐<br />
value electronics, computer equipment and other similar electronic items, to heavy machinery and household goods<br />
that do not have as time‐sensitive delivery requirements as the small packages sent by <strong>Aramex</strong>'s express delivery<br />
system. The inland service delivers shipments at lower costs than express delivery shipments or than the air freight<br />
delivery system. <strong>Aramex</strong> usually delivers its ground transportation shipments by truck and inland hauling. <strong>Aramex</strong><br />
wet‐leases most of the trucks it uses for these services today. Wet‐leases are leases from local trucking companies of<br />
vehicles, drivers and other personnel needed to complete the service.<br />
<strong>Aramex</strong> started providing such ground transportation and land freight services in 1998 through a network of trucking<br />
routes from Dubai, UAE, to each of Riyadh in Saudi Arabia and Amman in Jordan. At present the company has<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 5
expanded its ground transportation network in the Arabian Gulf by adding additional routes linking Dubai to Muscat<br />
(Oman), Kuwait City (Kuwait), Manama (Bahrain) and Doha (Qatar) and the rest of Saudi Arabia. This expansion<br />
included such routes as Dubai/Amman, Amman/Beirut and Istanbul/Levant sectors. Recently we added<br />
Cairo/Khartoum and Cairo/Tripoli runs. The company has also established extensions from several of these cities to<br />
surrounding areas. <strong>Aramex</strong> has focused on the expansion of its ground transportation network in the Arabian Gulf<br />
States due to its belief that such a region constitutes a number of highly under‐developed markets with rising<br />
demand for “efficient” ground transportation delivery services between them. <strong>Aramex</strong> plans to further expand its<br />
ground transportation network in the Middle East at large and in the Levant region in particular, according to the<br />
increasing demands from its local and network clients.<br />
� Logistics<br />
<strong>Aramex</strong> offers third‐party logistics services through a network of logistics facilities located at major areas in the<br />
Arabian Gulf, Middle East, North Africa and North‐Western Europe. Three of these centers are located at free zones<br />
in Jebel Ali in the UAE, Bahrain and Queen Alia International Airport in Jordan. <strong>Aramex</strong> also has several local logistics<br />
centers in Saudi Arabia, Lebanon, Jordan, Egypt, Kuwait and the USA.<br />
A wide range of customized services is offered through these centers including warehousing and its management,<br />
distribution, supply chain management, customs brokerage, order fulfillment, inventory management and value‐<br />
added services. <strong>Aramex</strong> also offers multiple storage options that range from temperature‐controlled to rack, bulk<br />
and open‐yard. The logistics centers are operated using world‐class warehouse management systems and are<br />
monitored 24 hours a day. All shipments coming in and out of the logistics centers can be monitored and tracked on<br />
the World Wide Web through the company’s web site (www.aramex.com).<br />
� Domestic Express Delivery<br />
<strong>Aramex</strong> has developed an extensive network for the express delivery of small parcels, and has the capability to pick‐<br />
up and deliver shipments from city to city and within cities in every country in which it operates. <strong>Aramex</strong> offers a<br />
wide range of domestic delivery services to satisfy customers' local distribution needs; from standard services like<br />
same‐day, next‐day and deferred delivery, to customized business solutions including inter‐branch mail delivery, ad<br />
hoc and regular mass mail, and secure distribution of credit cards for financial institutions to their customers.<br />
<strong>Aramex</strong>’s domestic solutions are highly customizable, for example our customers in the telecom sector store high<br />
value devices with us to be delivered upon notification their customers’ doors. These solutions can be further<br />
customized with value added services including collecting of payments for invoices or sold goods (Cash on Delivery),<br />
and Document Return for important documents that need to be signed and swiftly returned.<br />
<strong>Aramex</strong> holds a leading position in the domestic express delivery market in countries where it operates. Its<br />
customers include e‐commerce‐related businesses, local distributors, pharmaceutical companies, telecom operators,<br />
and banks.<br />
� Document Management<br />
In early 2005, <strong>Aramex</strong> acquired InfoFort, a leading document records management company in the Middle East and<br />
North Africa. InfoFort offers a full range of comprehensive information storage, management and production<br />
services including record management, off‐site data protection, digital archiving, secure shredding and film and<br />
sound archives.<br />
� U.S. and U.K. Mailbox Service<br />
In 2000, <strong>Aramex</strong> started offering a specialized service called Shop&Ship. The service gives customers personal<br />
mailing addresses in the US and the UK to use for receiving correspondence as well as personal and business<br />
packages such as Internet orders, gifts, magazine subscriptions, bank statements, etc. <strong>Aramex</strong> forwards the mailbox<br />
contents to the customer at their local address in any of the 19 cities in which this service is available.<br />
� Shopping Services<br />
<strong>Aramex</strong> offers end‐to‐end shopping services from mail order catalog companies and internet shopping sites to its<br />
retail customers. The service is known as "Shop the World” and was developed in response to Middle Eastern<br />
customer requests to receive goods marketed through foreign catalogs and online shopping sites that do not offer<br />
international shipping options.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 6
� Magazines and Newspaper Distribution<br />
In November 2002, <strong>Aramex</strong> acquired Jordan Distribution Agency, which is the leading distributor of foreign and local<br />
publications, including mass circulation of the major newspapers in Jordan. <strong>Aramex</strong> has introduced the latest<br />
distribution mechanisms to the acquired company and expanded its network in the country and abroad.<br />
Customers<br />
<strong>Aramex</strong> has a diverse customer base, totaling over 50,000 accounts in the year <strong>2006</strong>, which spans a broad<br />
geographic area, concentrated across in the Middle East, Europe, South Asia and North America, and includes<br />
companies in a wide range of industries. Customers, both retail and wholesale, are also diverse in terms of their<br />
service needs. <strong>Aramex</strong>'s customers are not concentrated in any one particular industry but typical customers include<br />
trading companies, pharmaceutical companies, banks, service and information companies, manufacturing and<br />
regional distribution companies and express companies. The broad range of services, which the company offers, has<br />
developed in response to the growing diversity of its customers. <strong>Aramex</strong>'s customers are making increased use of<br />
the high value‐added services provided by the company, from express services to door‐to‐door airfreight forwarding<br />
to customized special services.<br />
<strong>Aramex</strong> has both retail and wholesale customers. Retail customers (i.e., those who are serviced and billed directly by<br />
the company) include both express and freight forwarding accounts. Wholesale customers consist primarily of<br />
express accounts.<br />
Growth Strategy<br />
<strong>Aramex</strong>’s growth strategy includes the following key elements:<br />
� Expanding market geographic presence in the Middle East, South Asia, and other contiguous emerging<br />
markets in order to 1) enhance regional market presence 2) expand customer base, and 3) reduce<br />
geographic revenue concentration<br />
� Providing ‘Total Transportation Solutions’, including 1) logistics management 2) multi‐modal regional<br />
transportation and distribution (express air freight, air freight forwarding and ground distribution) 3)<br />
inventory management, and 4) local warehousing<br />
� Continued emphasis on technology to continuously enhance quality of customer service, and quality and<br />
efficiency of operations<br />
� Marketing our services through ‘<strong>Aramex</strong> teams’ – cross‐functional, personalized customer teams who<br />
possess the marketing skills, local market knowledge, service expertise and industry experience necessary to<br />
identify and effectively address individual customer’s transportation requirements at each of our stations<br />
� Achieving growth through strategic alliances and acquisitions. <strong>Aramex</strong> has established strategic relationships<br />
with a large number of industry participants through its participation in Global Distribution Alliance. The<br />
company has also undertaken several acquisitions in 2005 and continued this course of action in <strong>2006</strong>.<br />
Acquisitions in <strong>2006</strong> are listed on page 9.<br />
Our growth performance in different aspects of our business is captured in charts below and on the next page.<br />
Growth in Total Number of Shipments<br />
11,519,644<br />
16,697,627<br />
23,008,602<br />
2004 2005 <strong>2006</strong><br />
76,736,916<br />
Assests Growth (USD)<br />
119,568,970<br />
411,810,434<br />
2004 2005 <strong>2006</strong><br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 7
188.7<br />
Organizational Structure<br />
Total = USD 331.3 million<br />
<strong>Aramex</strong> is a public joint stock company registered under the laws of the United Arab Emirates with its shares publicly<br />
traded on the Dubai Financial Market as of July 2005. <strong>Aramex</strong> headquarters is located in Amman, Jordan. The<br />
headquarters is referred to as the ‘General Services Office’ (GSO), to emphasize its function as a support unit and<br />
service center to the operations. The company is managed along two tracks: 1) by service, with senior managers for<br />
each key service line, which is cross‐linked 2) geographically, with regional senior managers, country managers, and<br />
cross‐functional country‐based ‘<strong>Aramex</strong> teams’ offering coordination of all <strong>Aramex</strong> services on a customized basis to<br />
<strong>Aramex</strong> customers.<br />
Global Network<br />
Revenue Growth (USD million)<br />
371.3<br />
232.5<br />
2004 2005 <strong>2006</strong><br />
2954<br />
3934<br />
5823<br />
2004 2005 <strong>2006</strong><br />
VP Express<br />
Growth in Employees<br />
InfoFort<br />
Managing<br />
Director<br />
Sr. VP<br />
Cargo<br />
12.957<br />
Corporate Management Structure<br />
Chief<br />
Strategy<br />
Officer, Sr.<br />
Vice<br />
President<br />
Founder and CEO<br />
VP Logistics<br />
and Ground<br />
Operations<br />
VP UAE and<br />
Oman<br />
Sr. VP<br />
Finance<br />
and CFO<br />
Profit Growth (USD millions)<br />
20.259<br />
25.928<br />
2004 2005 <strong>2006</strong><br />
Total Capitalization <strong>2006</strong> (USD millions)<br />
<strong>Aramex</strong> is a founding member and chair of the Global Distribution Alliance (GDA), which comprises of over 40<br />
leading express transportation and logistics providers with over 12,000 offices worldwide, more than 66,000<br />
employees, an excess of 33,000 vehicles and operations in more than 220 countries throughout the world. The<br />
Global Distribution Alliance is strategically positioned to provide swift and reliable global transportation solutions.<br />
317.9<br />
96%<br />
VP KSA,<br />
Upper Gulf,<br />
South and<br />
East Asia<br />
Group<br />
Financial<br />
Controller<br />
VP<br />
13.4<br />
4%<br />
Sr. VP<br />
Europe and<br />
North<br />
America<br />
Debt (interest bearing<br />
accounts)<br />
Total Equity<br />
Chief<br />
Marketing<br />
Officer<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 8<br />
Chief<br />
Technology<br />
Officer
Each member of the alliance provides extensive coverage and in depth expertise in a different region of the world.<br />
Together, the members provide total world coverage with thorough local knowledge, ensuring a seamless and<br />
reliable service in every corner of the globe.<br />
Acquisitions in <strong>2006</strong><br />
On January 1, <strong>2006</strong> <strong>Aramex</strong> acquired Freight Professionals, a freight forwarding company based in Egypt specializing<br />
in air and ocean freight. In April we acquired TwoWay Vanguard, a major Dublin‐based Logistics and Freight<br />
Forwarding company. With this acquisition, <strong>Aramex</strong> acquired TwoWay Vanguard’s 15‐office network across Ireland,<br />
the United Kingdom and The Netherlands, and over 350 employees. The company, whose revenue in 2005 topped<br />
$85 million, offers a complete range of logistics solutions that focus on Global Air Freight, Global Ocean Freight, UK‐<br />
Ireland‐UK Express Road Freight and Value Added Logistics. In November, we acquired Dubai‐based Docman Limited,<br />
a documents and records storage, scanning and management specialist. Docman will be teamed with InfoFort,<br />
<strong>Aramex</strong>’s regional and market leading wholly‐owned document records management company, which was acquired<br />
in 2005. The move will consolidate InfoFort’s position as the only premier documents storage and management<br />
enterprise in the region and offers synergies with its core business and markets.<br />
Company Structure<br />
<strong>Aramex</strong> PJSC is a Public Joint Stock Company listed on the Dubai Financial Market, the company was registered in the<br />
Emirate of Dubai, UAE on 15 February 2005 under the UAE Federal law No 8 of 1984 (as amended). On 22 June 2005,<br />
the company acquired 100% shareholding in <strong>Aramex</strong> International Limited, a company incorporated under the laws<br />
of Bermuda.<br />
<strong>Aramex</strong> is a global provider of total transportation solutions offering express delivery, freight forwarding and<br />
logistics services.<br />
Awards and Certifications<br />
<strong>Aramex</strong> received a number of awards in <strong>2006</strong> including:<br />
� “Global Express Delivery Company <strong>2006</strong>”, from the Institute of Transport Management (ITM), the UK‐based<br />
international standards‐setting organization for the sector.<br />
� Three “Middle East Logistics Awards <strong>2006</strong>” (MELA) awards: “Best Express Operator”, “Entrepreneurship in<br />
Logistics ‐ Outstanding Achievement” and “Personality of the Year ‐ Land Transport Industry”.<br />
Also in <strong>2006</strong>, <strong>Aramex</strong> received a globally recognized certification as a result of its successful application of the<br />
highest international standards for security across its logistics network. The Technology Asset Protection Association<br />
(TAPA) – the transportation industry’s global technical authority ‐ has certified the security structure and<br />
organization that <strong>Aramex</strong> applies throughout its supply chain.<br />
<strong>Aramex</strong> is certified to the globally recognized ISO9001:2000 generic management systems standard for quality<br />
management. Our scope of registration is: “The provision of an international express and domestic express courier<br />
and freight forwarding logistics service”.<br />
<strong>Report</strong> Profile<br />
This report, which is the company’s first sustainability report, covers the sustainability performance of <strong>Aramex</strong> for<br />
the <strong>2006</strong> calendar year. Where possible, data for preceding years is provided for comparison purposes. The following<br />
sections present information about <strong>Aramex</strong> International Limited for the years 2004 and 2005 and information about<br />
<strong>Aramex</strong> PJSC for the year <strong>2006</strong>.<br />
This is the company’s first sustainability report. Social, environmental, health and safety, and other performances<br />
were not previously reported.<br />
This report outlines commitments and targets for priority performance aspects for 2007. The company will report on<br />
its performance against these goals next year, and intends to issue a sustainability report annually.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 9
For questions or feedback on the content of this report, please contact:<br />
Raji Hattar, Chief <strong>Sustainability</strong> and Compliance Officer (Email: sustainability@aramex.com)<br />
Or write to: <strong>Sustainability</strong> Team, <strong>Aramex</strong> GSO, P.O. Box 960913, Amman 11196, Jordan<br />
We expect this report to be used extensively by sustainability experts. We also hope for and intend to encourage its<br />
use by all of the key stakeholders outlined in this report - we believe this report presents an outstanding platform<br />
for improved dialogue, collaboration, and sustainability innovation. For example, we hope that it will serve as both a<br />
motivational tool for our employees, particularly as an inspiration for innovation and for improved performance<br />
across all dimensions of sustainability. As one of the first sustainability reports in the Arab world, we also hope that it<br />
will be reviewed by opinion leaders and chief executive officers and provide inspiration for the widespread take-up<br />
of sustainability in the region.<br />
Scope of the <strong>Report</strong><br />
> Determining our Priority <strong>Sustainability</strong> Issues<br />
We have undertaken a systematic process for identifying the company’s priority sustainability issues. We have<br />
applied each of the principles for defining report content. Our process has resulted in the identification of seven<br />
major sustainability issues that will drive our sustainability strategy. We report on each of these major issues in this<br />
report. These issues are all deemed essential to business success and are not prioritized. Prioritization within each<br />
issue is defined in the form of a selected group of Key Performance Indicators (KPIs) and related targets that we have<br />
determined as the best means of achieving progress towards sustainability. We provide 3 year and 1 year targets for<br />
these KPIs.<br />
We have determined our sustainability issues - and thus materiality - using a process consistent with the G3<br />
‘<strong>Report</strong>ing Principles for Defining Content’. In particular:<br />
Materiality: We considered and believe we have covered all topics (and included associated indicators) that reflect<br />
the organization’s significant economic, environmental, and social impacts, or that would substantively influence the<br />
assessments and decisions of stakeholders. This includes main issues raised by stakeholders, issues reported on by<br />
our peers, standards and guidelines including the GRI G3 <strong>Report</strong>ing Guidelines and the GRI Logistics and<br />
Transportation Sector Supplement (see GRI index, page 102), regulations and laws in our countries of operation,<br />
critical factors for enabling success including our corporate culture, the state of existing systems within the company,<br />
and the significant potential of our core competencies to contribute to sustainable development.<br />
Stakeholder inclusiveness: We considered and believe we have identified all of our key stakeholders and have<br />
outlined how we engage them, our understanding of their interests and expectations, and how we have responded.<br />
<strong>Sustainability</strong> context: We considered our sustainability context, taking into account global trends towards<br />
sustainability but also considering regional and local contexts in which we operate. In some cases we point out the<br />
different priorities among these contexts, and how we try to best address these issues from multiple perspectives<br />
<strong>Report</strong>ing boundaries and completeness: We aimed to ensure that our report boundaries covered as much of our<br />
economic, environmental, and social impacts as possible, while also yielding quality information for the report and<br />
clearly defined boundaries. We believe this report enables stakeholders to assess <strong>Aramex</strong>’s performance in this<br />
reporting period. We furthermore commit to expanding our coverage in future years.<br />
> Ensuring Quality in our <strong>Sustainability</strong> <strong>Report</strong>ing<br />
Quality is a core element of the <strong>Aramex</strong> culture and we have vigorously attempted to achieve highest level of quality<br />
within the restrictions of our current management systems. We have used the GRI ‘<strong>Report</strong>ing Principles for Defining<br />
Quality’, including:<br />
Balance: We believe this report presents both the positive aspects of our performance, as well as areas requiring<br />
significant improvement.<br />
Comparability: Wherever possible we have provided year on year data, and have attempted wherever possible to<br />
follow the GRI Indicator Protocols in order to facilitate comparison of our report against industry peers and other<br />
companies practicing sustainability.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 10
Accuracy: We have aimed for maximum accuracy. Where estimations or other limitations to the data are involved,<br />
this is identified.<br />
Timeliness: This report is being released within 4 months of <strong>2006</strong> year end, and will be presented at <strong>Aramex</strong> Annual<br />
Leaders Conference celebrating the company's 25 th anniversary in order to allow for discussion of all aspects of our<br />
performance in <strong>2006</strong>.<br />
Clarity: <strong>Sustainability</strong> is a relatively new concept to many regions where we operate and we have made an effort to<br />
provide introductory information where useful to facilitate reader understanding of the report content.<br />
Reliability: We have obtained third‐party assurance for this report, the scope of which is outlined in the assurance<br />
provider statement. We have furthermore committed to improving management systems and data capture for all<br />
key performance indicators as identified in this report, and a substantial number of other GRI indicators.<br />
<strong>Report</strong>ing Boundaries and Limitations<br />
The report covers our global operations. Most of the data in the report includes all 100% owned companies and<br />
stations, including recent acquisitions (see next page). Where this is not the case, it is clearly stated.<br />
� Limitations<br />
<strong>Aramex</strong> is a non‐asset based company. This means that the company generally does not maintain assets and instead<br />
uses the services of other transportation providers (such as airlines), and leases the majority of its vehicles. (<strong>Aramex</strong><br />
does maintain a small vehicle fleet). In some markets, most notably India, the company also sub‐contracts pickup<br />
and delivery of express packages to local companies.<br />
These considerations have major implications looking at factors such as fuel consumption and overall emissions,<br />
including greenhouse gas emissions. For this report, our calculation of fuel consumption (from which emissions<br />
might be derived) includes only fuel used for owned and leased vehicles, and not for example airplane fuel or the<br />
third‐party contractors. We recognize this underestimates our overall emissions levels, at the same time as<br />
understanding that there is ongoing debate about responsibility for such shared emissions. In the coming year we<br />
aim to explore how best to track such emissions in the future – including considerations as to who should bear<br />
responsibility for what percentage of emissions (including but not limited to, for example in the case of an airline –<br />
the passengers, the airline, our customer, or ourselves).<br />
This report also does not include:<br />
� Franchises, of which there are 3 (Yemen, Switzerland, and Bulgaria) except for the financial relationship<br />
(paying their invoices for delivering our packages). We hope to include these in 2007 reporting<br />
� The Global Distribution Alliance (GDA). This is a global network independent of <strong>Aramex</strong>. As value chain<br />
partners we do hope to positively and constructively engage the GDA in order to shift this alliance towards<br />
sustainability. This will allow for the dual benefit of 1) significantly reducing our overall environmental<br />
impact, and 2) being able to better measure our overall emissions and impacts.<br />
This report partially includes:<br />
� Sub‐contracted operations: The major market in which this approach is used is India. This report includes<br />
fleet information, fatality information, and environment and health survey information from our sub‐<br />
contracted Indian operations, as well as the normal accounting of its financial impact on our financial<br />
statements. It does not include statistical human resources data for sub‐contracted operations but does<br />
comment in places on these aspects (for example, see section ‘Global Workplace Conditions’). We are trying<br />
to determine the best way to approach the inclusion of sub‐contractors, and we commit to expanding our<br />
coverage to include further aspects of our sub‐contracted operations. The current exclusion is a result of the<br />
challenges of a first sustainability report and meaningful extension of this work to sub‐contractors. We are<br />
not aware of any material issues or concerns that require immediate reporting or action.<br />
� Fuel consumption and emissions estimates – we have calculated our fuel consumption but it is our concern<br />
that an emissions estimate would not meet sufficient quality considerations. We aim to provide emissions<br />
data, along with comparable historical data where possible, as soon as we have obtained sufficient data to<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 11
enable an accurate and reliable volume of emissions. We will be making our emissions estimate available<br />
online in the coming months, prior to our next report.<br />
� Environment – as noted, this report does not include fuel consumption or emissions (including greenhouse<br />
gases) from aircraft and ships used in transportation of products. As we determine better means of assessing<br />
these emissions, we will ensure that data is presented in a manner that allows for comparability of<br />
performance year over year.<br />
� Other Considerations<br />
Acquisition strategy: The company is currently undertaking rapid growth through an aggressive acquisition strategy.<br />
We will attempt to present future data in a manner that allows for clear comparability and understandability. For<br />
this year’s report, we did not distinguish the added impact of any acquisitions with regard to any indicators.<br />
Data measurement techniques: Unless otherwise stated, indicators include global coverage, subject to the above<br />
considerations. Different indicators may have different levels of preciseness. For example, the company already has<br />
in place strong management and information systems for financial data and human resources data and therefore<br />
this data is more accurate than other areas, such as water consumption where data is being collected for the first<br />
time with no prior information systems. This necessarily involves some level of estimation. We have provided an<br />
explanation of any estimation including the level of accuracy and approach to data collection for the relevant<br />
indicator.<br />
Where possible, data for preceding years is provided for comparison purposes.<br />
Where currently not complete, we aim to enhance data completeness, expand data coverage beyond the boundaries<br />
of this report, and expand coverage in terms of number of indicators.<br />
Key Performance Indicators: The report references a set of Key Performance Indicators (KPIs). Many of the proposed<br />
KPIs have no previous measurement but nonetheless we have determined that these indicators will ultimately be<br />
more meaningful than indicators for which we could present current data. In 2007 we intend to establish baseline<br />
measurements of current performance for all KPIs.<br />
This report includes a GRI content index. It can be found on page 102.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 12
The <strong>Sustainability</strong> Opportunity<br />
<strong>Sustainability</strong> fits. It fits with our goal of creating long‐term value for our<br />
investors by being the company of choice for all of our key stakeholders. It fits<br />
with our corporate culture, which has always focused on entrepreneurship<br />
and innovation, opportunities for growth and development, diversity across<br />
our global network and respect for others. It fits with our aim of finding the<br />
most efficient ways of meeting our customers’ growing needs. It fits with our<br />
role of facilitating responsible economic commerce and development. It fits<br />
with our understanding of our role in society and the history of actions which<br />
faithfully reflect it. And it fits with our growing recognition of the need to<br />
aggressively and urgently work to eliminate any harmful environmental<br />
impacts.<br />
Most excitingly, applying a sustainability lens to our view of the world has<br />
helped us to illuminate tremendous business opportunities, as well as expanded responsibilities. Our role as a global<br />
company is to look deeply and responsibly at the impact of our business on our stakeholders and the world at large.<br />
This report is a starting point. It uses the GRI guidelines, including the ‘Logistics and Transportation Sector<br />
Supplement’. We self‐declare this report to be Level B+, and have obtained Level B+ through third party assurance<br />
from Ernst and Young. The Global <strong>Report</strong>ing Initiative (GRI) has also reviewed this report and rated it B+.<br />
� Our <strong>Sustainability</strong> Context<br />
We are primarily a non‐asset based company; although we operate in a<br />
traditionally asset‐intensive business, we deliver our services using minimal<br />
owned assets. This strategy has been key to our overall business success. We<br />
also believe it holds great potential for our sustainability performance because<br />
it permits us to more rapidly implement less capital intensive environmental<br />
enhancements and allows us to integrate environmental performance as<br />
criterion in choosing between prospective business partners whose services we<br />
use in our shipment delivery cycle.<br />
Another unique aspect of our business is the Global Distribution Alliance (GDA),<br />
a partnership network of 40 leading logistics and transportation companies for<br />
which we act as an elected coordinating and administrative body. This network<br />
allows us to have global reach without extensive duplication of office and<br />
operational facilities, which positively influences our environmental footprint<br />
but also creates additional challenges in promoting sustainability through our<br />
value chain.<br />
Letter from the Founder and CEO<br />
Our definition of<br />
sustainability<br />
management is the<br />
integrated<br />
development and<br />
growth of our<br />
economic,<br />
environmental, and<br />
social performance in<br />
a manner that<br />
optimizes value for all<br />
of our stakeholders.<br />
We are a Middle East‐based company, historically focused on delivering services in the Arab world and South Asia.<br />
There are many international and regional issues that must be factored into our sustainability context, including both<br />
real and perceived cultural positions on some sustainability issues; for example, the role of women in the workplace.<br />
Many aspects of sustainable development are only beginning to appear on the public radar (e.g., environment).<br />
There is limited sustainability take‐up by companies. In fact, to our knowledge there are few if any other indigenous<br />
companies issuing sustainability reports.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 13
� Strategy and Analysis<br />
Our <strong>Sustainability</strong> analysis and strategy have been informed by several sources:<br />
� The perspectives, concerns, and opportunities identified by our own direct stakeholders<br />
� International standards, guidelines, and expectations, including the Global <strong>Report</strong>ing Initiative,<br />
AccountAbility 1000, the UN Global Compact<br />
� Trends in sustainability leadership by the world’s leading sustainability‐oriented companies<br />
� <strong>Sustainability</strong>‐related global trends, key indicators, and performance in the logistics and transportation<br />
sector<br />
In <strong>2006</strong>, we undertook a sustainability assessment and benchmarking process that assimilated / consolidated this<br />
information, and arrived at seven priority <strong>Sustainability</strong> Drivers for our business:<br />
� Attract and retain the best talent<br />
� Workplace, Road Safety, and Security<br />
� Economic Growth and Development<br />
� Marginalization in Society<br />
� Climate Change, the Environment, <strong>Sustainability</strong>‐driven Innovation<br />
� Urban Impacts: Road Traffic, Congestion, and Urban Pollution<br />
� Overall opportunities related to the trend Towards Sustainable Development (by businesses, markets,<br />
investors, governments, civil society, consumers)<br />
Further descriptions of these drivers, along with our associated strategies, Key Performance Indicators, and short<br />
and long‐term targets are captured in a table on page 18 and 19. They form the basis for our sustainability<br />
management and reporting.<br />
� Setting Dramatic Targets<br />
We are convinced that sustainability is the future direction of business. We also consider it to be imperative to<br />
sustained prosperity, peace, and ecosystem integrity in our world. Although we are starting later than our<br />
international counterparts in some aspects, we aim to be overall pioneers in sustainability, especially in the Middle<br />
East region. Towards this end, we have set the following major sustainability targets:<br />
� Become carbon neutral, succeeding as the first company in our industry globally to achieve this distinction<br />
� Achieve a reduction of 50% in emissions within 3 years<br />
� Achieve a reduction of 50% percent in vehicular accidents and injuries, and have zero fatalities within 3 years<br />
� Work with other leading companies in the Middle East to help achieve a goal of at least 100 sustainability<br />
reporters in the region within 5 years.<br />
If these targets seem overly optimistic and ambitious, we agree. If they seem difficult, they are. But we are<br />
convinced this is the future direction of business. We aim to be pioneers.<br />
We also ask you to temporarily suspend judgment and take a look at our ambitious plans for achieving these goals,<br />
as outlined in this report. We have a 25‐year history of surprising our stakeholders in positive ways. And I personally<br />
believe that aiming for sustainability is the most important undertaking ever pursued by our company.<br />
In closing, let me reiterate: <strong>Sustainability</strong> will transform the way we think about our business. It will lead to new<br />
types of services, new levels of understanding, new ways of collaboration, renewed respect for our place in the<br />
world, and a profound commitment to ecological preservation through sustainability innovation, all of which will<br />
benefit shareholders and stakeholders alike.<br />
Fadi Ghandour<br />
Founder and CEO<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 14
<strong>Sustainability</strong> Philosophy and Framework<br />
As an effort to capture our growing understanding of sustainability and how we can maximize our sustainability<br />
strategy performance, we have adopted the following sustainability philosophy:<br />
<strong>Aramex</strong> is committed to sustainability. We believe:<br />
� That ultimately our business success, and the success of our customers, is dependent on achieving<br />
optimal performance across economic, environmental and social performance – our sustainability<br />
performance.<br />
� That we will best succeed when we are the company of choice for all our key stakeholders –<br />
customers, shareholders, employees, business partners, governments, and the communities in<br />
which we work and live.<br />
� That as a logistics and transportation solutions company, sustainability is at the heart of our<br />
business, and that we have a responsibility to lead a transition to zero negative environmental<br />
impact.<br />
� That sustainability is consistent with, and the logical extension of, our corporate culture. It is<br />
consistent from an ethical standpoint, from a belonging in the community standpoint, and from a<br />
quality, creativity and entrepreneurship standpoint.<br />
� That sustainability can drive our innovation agenda to new heights of success, and that we can<br />
find ways to innovate which simultaneously create economic, environmental, and social value.<br />
� Through our products and services, we help bring the world closer together. This is an important<br />
time to be committed to this long‐term endeavor.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> Framework<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 15
Stakeholder Summary:<br />
Who, How we Engage, Priority Considerations, and our Response<br />
� Our Approach to Engagement with Stakeholders<br />
We are a company that feels passionately about our role in society, and the importance of understanding that<br />
responsibility. In principle, we have always acknowledged a compelling need to listen carefully to our stakeholders<br />
and aim to be the company of choice for all of them. We define stakeholders as those individuals or groups who<br />
impact on or are impacted by our business. We profile our key stakeholders in the tables in this section.<br />
We believe that engagement with our stakeholders is at the heart of sustainability. It allows us to do our best to<br />
understand, respond to, and work with our stakeholders to accelerate innovation and optimize development across<br />
economic, social and environmental dimensions. At the same time, sustainability management gives us a framework<br />
for more systematic, efficient and effective engagement. In 2007 we will be using the AccountAbility 1000<br />
Stakeholder Engagement Standard as a learning tool and guide to achieve this. We aim to be able to assure our<br />
sustainability reporting against the AccountAbility 1000 Assurance Standard by 2009.<br />
The table on this page and the next page represents an overview of our key stakeholders and our existing<br />
approaches to engagement. Near the end of <strong>2006</strong>, as part of our first steps in implementing sustainability, we also<br />
conducted smaller scale surveys including a very limited survey of employees on the quality of management’s<br />
engagement with employees, and a survey of a small number of country operations managers to better determine<br />
their priority issues in health, safety, and environment. We will be incorporating these and other survey questions<br />
into a company‐wide employee survey that we will begin conducting annually from 2007. This engagement will form<br />
the basis of several Key Performance Indicators including a Safety Culture perception index, a <strong>Sustainability</strong><br />
Innovation perception index, a <strong>Sustainability</strong> Culture perception index, an Employee Satisfaction perception index<br />
and a Quality of Engagement perception index.<br />
Stakeholder How we Engage<br />
Employees<br />
We have 5823* full‐time and<br />
778 part‐time employees<br />
across seven regions. Our<br />
workforce is relatively young,<br />
with the largest number<br />
falling between the ages of<br />
30 and 50.<br />
* End of Year <strong>2006</strong><br />
Customers<br />
We serve over 50,000<br />
customers, spanning a broad<br />
geographic area,<br />
concentrated mainly in the<br />
Middle East, Europe, South<br />
Asia and North America.<br />
Primary methods of<br />
engagement include regular<br />
team and operational<br />
meetings, brainstorming<br />
meetings, performance<br />
appraisals, surveys, focus<br />
groups, and an annual<br />
leaders conference.<br />
Engaging the customers is<br />
an ongoing process, as our<br />
Teams consistently<br />
communicate with<br />
customers and gather their<br />
feedback through one‐on‐<br />
one meetings, the online<br />
system, contact centers, and<br />
surveys.<br />
Priority Issues of<br />
Stakeholder<br />
Priority considerations<br />
include:<br />
� Salary<br />
� Benefits<br />
� Opportunity for<br />
development and<br />
promotion; Job security<br />
and safety<br />
� Overall great place to<br />
work with good<br />
reputation<br />
� Staff development and<br />
training<br />
Priority considerations<br />
include:<br />
� Cost‐effective services<br />
� On‐time delivery<br />
� Safety and Privacy<br />
� Customized Service<br />
Our Response and<br />
Performance<br />
We aim to be employer of<br />
choice for top talent in our<br />
markets of operation. We are a<br />
highly regarded employer in<br />
markets where we have our<br />
largest presence.<br />
Overall great place to work and<br />
reputation: Page 55<br />
Salary: Page 56<br />
Benefits: Page 56<br />
Opportunities for development<br />
and promotion: Page 52<br />
Job security and safety: Page<br />
56<br />
We aim to engage our<br />
customer base in all regions<br />
that we operate, and gather<br />
their feedback to use it in our<br />
strategy.<br />
Customer care: Page 38<br />
Systems and tools: Page 39<br />
Customer engagement: Page<br />
39<br />
Safety and Privacy: Page 41<br />
Responsible Marketing: Page<br />
41<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 16
Stakeholder How we Engage<br />
GDA and Business Partners<br />
The Global Distribution<br />
Alliance (GDA) is a<br />
partnership of over 40<br />
leading logistics and<br />
transportation companies.<br />
Other business partners<br />
include vehicle leasing<br />
companies, suppliers of<br />
product components,<br />
suppliers of our assets (e.g.,<br />
vehicles), and service<br />
providers, among others.<br />
Shareholders<br />
Our shares are widely held.<br />
We had 36524 shareholders<br />
at the end of <strong>2006</strong>. Our<br />
largest shareholder owns<br />
approximately 9.9%.<br />
Our institutional investors<br />
hold approximately 51 % of<br />
the total shares.<br />
We increasingly hope to also<br />
attract worldwide investors<br />
applying sustainability criteria<br />
to investments.<br />
Communities and Society<br />
The wider society of the cities<br />
and countries in which we do<br />
business. This includes the<br />
communities where our<br />
operations are located. It also<br />
includes marginalized<br />
communities where we<br />
operate, and communities<br />
impacted by natural and<br />
human disasters in our<br />
regions of operation.<br />
The Engagement process<br />
with the GDA is well<br />
structured, and includes: an<br />
elected Board of Partners<br />
that acts as a strategic and<br />
policy setting group for the<br />
network; provision of a full‐<br />
time staff at <strong>Aramex</strong> GSO to<br />
interact with and address the<br />
day to day GDA issues<br />
operationally and<br />
administratively; an Annual<br />
GDA Conference, for which<br />
the GDA staff at the GSO<br />
handles the coordination and<br />
arrangements.<br />
Engagement with sub‐<br />
contractors and suppliers<br />
occurs primarily during<br />
negotiating, transactions,<br />
and servicing.<br />
Primarily through our Annual<br />
General Meeting, Annual<br />
<strong>Report</strong>, quarterly earnings<br />
reports, press releases, the<br />
investor relations section on<br />
our website, and our investor<br />
relations office and contact<br />
persons for direct inquiries<br />
or concerns.<br />
Methods of engagement<br />
include:<br />
� Through our stores and<br />
outlets (as customers)<br />
� Through our employees<br />
and their families<br />
� Through direct feedback<br />
mechanisms – such as any<br />
community concerns<br />
around noise, traffic, and<br />
road safety<br />
� Through our contributions<br />
and participation in<br />
community events,<br />
including sporting events<br />
� Through direct<br />
engagement at major<br />
initiatives such as Ruwwad<br />
Foundation and Jabal Al‐<br />
Natheef<br />
Priority Issues of<br />
Stakeholder<br />
Ensure global reach, high<br />
quality of services provided by<br />
each member, and overall<br />
ability of GDA members to<br />
compete on par with biggest<br />
global logistics and<br />
transportation companies.<br />
Require coordination and<br />
fairness of GDA issues such as:<br />
Pricing, quality standards,<br />
membership standards,<br />
competition and collaboration<br />
among members, and<br />
equitable dispute mechanisms.<br />
Suppliers are primarily<br />
concerned with on‐time<br />
payment, ongoing securing of<br />
<strong>Aramex</strong> business, and ability to<br />
compete for <strong>Aramex</strong> business.<br />
• Above average return on<br />
investment<br />
• High integrity, efficiently and<br />
effectively managed<br />
company<br />
• Outstanding corporate<br />
reputation and brand<br />
• Excellent continuous growth<br />
Being a good corporate citizen,<br />
including:<br />
� Noise management<br />
� Road safety<br />
� Traffic congestion<br />
� Job creation, local hiring,<br />
paying good wages and<br />
caring for employees<br />
� Giving back to society and<br />
communities where we<br />
operate through charitable<br />
donations<br />
� Expectation to respond to<br />
disasters and be a delivery<br />
vehicle for people to make<br />
their own contributions to<br />
disaster relief<br />
� At Jabal Al‐Natheef, support<br />
in empowerment through<br />
lobbying for basic services<br />
Our Response and<br />
Performance<br />
GDA management: We<br />
fully support the GDA as a<br />
critical strategic business<br />
partner and have been<br />
elected to manage the<br />
GDA from our GSO<br />
offices. Page 82<br />
Suppliers: We aim to treat<br />
our business partners<br />
with the same respect<br />
and level of quality that<br />
we expect from them in<br />
our business dealings.<br />
Page 80<br />
We have achieved<br />
outstanding profitability<br />
and growth along with<br />
reputation for integrity<br />
and results.<br />
Profitability: Page 30<br />
Growth: Page 30<br />
Reputation and brand:<br />
<strong>Aramex</strong> ranked 13 th by<br />
Forbes ‘Top Arab Brands’,<br />
<strong>2006</strong>. Page 3<br />
Return on investment:<br />
Page 31<br />
We strive to be well‐<br />
regarded as an<br />
outstanding corporate<br />
citizen.<br />
Noise management: Page<br />
68<br />
Road safety: Page 68<br />
Traffic congestion: Page<br />
69<br />
Job Creation: Page 77<br />
Charitable donations:<br />
Page 74<br />
Emergency relief: Page 78<br />
Jabal Al‐Natheef (case<br />
study): Page 75<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 17
<strong>Sustainability</strong> Issues, Key Performance Indicators, and 3‐year and Long‐Term Goals<br />
Based on our <strong>Sustainability</strong> Philosophy and Framework, we prioritized our key sustainability issues. Although we<br />
consider each of them important as we set aggressive performance indicators to achieve our goals. The following<br />
table lists the issues, offering a brief description of the issue and then outlining our response – starting with our<br />
perspective and then outlining our related Key Performance Indicators and 3 year and long‐term targets.<br />
<strong>Sustainability</strong> Issue Summary of the Issue Our Perspective<br />
1. Human Resources<br />
Development: Attracting and<br />
retaining the best talent<br />
2. Workplace and Road Safety,<br />
and Security<br />
3. Economic Growth and<br />
Development<br />
Quality human resources are one of <strong>Aramex</strong>’s most<br />
important assets. Adopting sustainability can be a major<br />
motivating factor for attracting top talent. <strong>Sustainability</strong><br />
suits the <strong>Aramex</strong> culture and is a logical next step for us.<br />
<strong>Sustainability</strong> leadership also offers visibility to top talent<br />
in markets where <strong>Aramex</strong> has a smaller presence.<br />
This is increasingly considered to be a basic principle of<br />
management excellence and a non‐negotiable aspect of<br />
the best places to work. In addition to the direct costs of<br />
accidents, road safety is moving to the forefront of the<br />
public eye in many major <strong>Aramex</strong> markets and thus can<br />
affect reputation.<br />
<strong>Sustainability</strong> is not separate from the business profit<br />
requirement. <strong>Sustainability</strong> is a core management<br />
approach that recognizes shareholders as a key<br />
stakeholder and aims to secure profits in the short and<br />
long‐term. Profitability can be improved with sustainable<br />
practices.<br />
4. Marginalization in society Two forms of marginalization pose moral and business<br />
dilemmas – economic and social; marginalized<br />
populations within the Middle East (such as refugee<br />
camps, or regions affected by natural disaster), and the<br />
growing global polarization between the economically<br />
developed and developing countries.<br />
5. Climate change, environment,<br />
sustainability‐driven innovation<br />
6. Urban impact: Road Traffic,<br />
Congestion, and Urban Pollution<br />
7. Overall opportunities related<br />
to the trend towards sustainable<br />
development (by business,<br />
markets, investors,<br />
governments, civil society, and<br />
consumers)<br />
Climate change is currently a low‐ranked issue in the<br />
Middle East, but is the top environmental or social<br />
challenge for the transportation sector globally (due to<br />
greenhouse gas emissions from transport). Elimination of<br />
emissions will become central to business success and a<br />
key focus of innovation.<br />
Urban congestion is becoming a major irritant in many of<br />
<strong>Aramex</strong>’s key markets, and as such it is also becoming a<br />
very public issue. This issue also has both direct costs<br />
(e.g., fuel, safety) and reputation costs (e.g., missed<br />
delivery deadlines, and <strong>Aramex</strong> may be viewed as<br />
contributing to congestion).<br />
More than half of all Fortune 500 companies have<br />
adopted sustainability. Major stock markets have<br />
sustainability indices, with investors viewing sustainability<br />
as the next step in management excellence. There is,<br />
however, little or no sustainability reporting in the Middle<br />
East, representing an enormous opportunity.<br />
Our business success will<br />
ultimately only be sustained<br />
by the quality of our<br />
people.<br />
We are committed to the<br />
health and safety of all our<br />
employees, and all persons<br />
affected by our operations.<br />
We believe that we will be<br />
rewarded financially for<br />
continuing excellence in<br />
service quality, customer<br />
care, and innovation<br />
towards sustainability.<br />
We believe that all people<br />
should have equal<br />
opportunity and equal<br />
rights.<br />
We must innovate towards<br />
an economy that does no<br />
harm to, and helps to<br />
regenerate, our<br />
environment.<br />
We are committed to<br />
playing our part in helping<br />
to reduce traffic congestion<br />
and pollution to ensure high<br />
mobility, vibrant, safe,<br />
healthy and clean cities.<br />
We believe that sustainable<br />
development is the only<br />
viable path forward.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 18
Key Performance Indicators Long‐Term Strategic Goal Short‐Term 2009 Strategic Targets<br />
Employee Satisfaction and<br />
Motivation Index<br />
Salaries and benefits<br />
Training per employee<br />
Women in management<br />
External rankings<br />
Workplace conditions<br />
Fatalities<br />
Lost‐time injury (LTI) rate<br />
At‐fault accident rate<br />
Growth<br />
Profitability<br />
International recognition<br />
Number of marginalized persons or<br />
families positively effected<br />
Greenhouse Gas Emission reductions<br />
Fuel consumption<br />
Fleet composition – emissions rating<br />
Service Innovations and revenue<br />
from green services<br />
Driving delivery time<br />
NOx and other smog emission<br />
reductions<br />
Partnerships and service Innovations<br />
Public and media recognition as<br />
sustainability leader<br />
Direct impact on take‐up of<br />
sustainability in countries where we<br />
operate<br />
Foster a sustainability‐rooted<br />
culture of excellence in innovation,<br />
entrepreneurship, creativity,<br />
dynamism, results, and respect and<br />
care for our employees and others ‐<br />
to be our number one competitive<br />
asset<br />
Drive for Zero; zero at‐fault<br />
fatalities, zero at‐fault injuries, zero<br />
at‐fault accidents<br />
To be recognized as the 5 th global<br />
logistics and express transportation<br />
company in the world<br />
Create opportunities and initiate<br />
meaningful change in marginalized<br />
societies, touching over 1 million<br />
underprivileged persons<br />
Be the first global logistics and<br />
express transportation provider in<br />
the world to be carbon neutral<br />
To create innovative services that<br />
will help shape and accelerate<br />
‘sustainable cities’<br />
Be the pioneer in the Middle East,<br />
Gulf, and North Africa. Ultimately,<br />
earn ranking among international<br />
sustainability leaders. Achieve<br />
corresponding recognition and<br />
growth in customers and ‘green’<br />
customers<br />
40 hours per employee annual average, with<br />
some level of training offered to 100% of<br />
employees<br />
10% women in senior management, 20% in<br />
middle management, 25% among ‘leaders’<br />
Top 10 Most Respected Employers / Best<br />
Places to Work / Most innovative companies<br />
in the Middle East<br />
All stations capable of successful certification<br />
against SA8000<br />
50% reduction in accidents/shipment<br />
50% reduction in LTI/shipment<br />
0 fatalities<br />
Achieve 18% growth in revenue and 20% in<br />
profitability<br />
Invest 1% of pre‐tax profits into the<br />
communities where we operate<br />
Continue to take a leadership role in<br />
facilitating humanitarian assistance in<br />
emergency situations<br />
50% reduction in emissions per shipment<br />
20% reduction in fuel<br />
100% elimination of leaded gas consumption<br />
50% of fleet transitioned towards LEV<br />
(minimum Euro 4) where applicable<br />
10 hybrid electric vehicles<br />
2% of revenue from green services<br />
50% reduction in NOx and other smog‐<br />
related emissions from road fleet<br />
10% reduction in driving delivery time<br />
Be the sustainability performance and<br />
reporting leader, as ranked by public<br />
opinion, sustainability indices, and relevant<br />
major international sustainability rankings<br />
Engage at least 20 other companies plus GDA<br />
members in <strong>Sustainability</strong> Excellence<br />
Leadership Forums<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 19
Governance, Ethics, Management Systems, and External Commitments<br />
� Governance and Board of Directors<br />
We strive to be a governance leader. In 2005 we were listed on the Dubai Financial Market, where we met all its<br />
requirements. The Emirates Securities and Commodities Authority has recently released ‘Corporate Governance<br />
Regulations for Joint‐Stock Companies and Institutional Discipline Criteria’. We are actively and confidently working<br />
to meet all criteria before they come into effect.<br />
<strong>Aramex</strong> is overseen by a Board of Directors. They are responsible for adherence to and implementation of our<br />
“Board of Directors’ Charter and Corporate Governance Guidelines”. There are currently eight male members, of<br />
which seven (87%) are independent directors. The only management representative on the Board is Fadi Ghandour,<br />
the Founder and CEO of <strong>Aramex</strong>. The chairperson of the Board is an independent director. Board members are not<br />
currently required to own shares. Each year the Board recommends to the Company’s shareholders the amount of<br />
remuneration to be paid to the Company’s directors. For the year ended <strong>2006</strong>, the Board recommended and the<br />
Company’s shareholders approved during the annual general meeting, that the directors would receive AED 100,000<br />
each.<br />
<strong>2006</strong> was our first full year of operating with a Board. The Board physically meets four times per year. There are<br />
currently two standing Committees – the Audit Committee and the Executive Committee. We aim to seek out highly<br />
qualified board members, with several specific criteria outlined in our “Board of Directors’ Charter and Corporate<br />
Governance Guidelines”, but also based on wider knowledge and best practice considerations. Conflicts of interest<br />
are self‐declared by members of the Board and those members are excused from relevant discussions. Where<br />
necessary, the Chair or another member can identify a potential conflict of interest involving another Board member.<br />
The Board generally does not have direct contact with employees, but learns of their concerns and considerations<br />
via the feedback processes within the <strong>Aramex</strong> system. With regard to shareholder resolutions, a shareholder must<br />
own 10% of the company to automatically succeed in placing an item on the agenda. There are currently no<br />
shareholders with 10% or more ownership (the three largest ownerships are 9.9%, 4.6%, and 4.2%). As such, agenda<br />
items are at the discretion of the Board. Any shareholder can raise an issue during the Annual General Meeting.<br />
Information about the Board and <strong>Aramex</strong> governance can be found in our Annual <strong>Report</strong>.<br />
As part of the continuous improvement of our governance, management systems and controls, an Internal Audit<br />
Department was established in June 2005. The Internal Audit function provides the Board of Directors, Audit<br />
Committee and the management of <strong>Aramex</strong> with objective and reliable information that is useful in appraising<br />
performance and measuring compliance with policies and procedures. It provides independent, objective assurance<br />
and consulting services designed to add value and improve our operations. In‐line with the Institute of Internal<br />
Auditors standards, it uses a systematic, disciplined approach to evaluating and improving the effectiveness of risk<br />
management, control and governance process.<br />
The Executive Team at <strong>Aramex</strong> is also governed by a strict system that measures their performance against the<br />
indirect goals. On a yearly basis, and based on the economic growth of each region or station, financial targets,<br />
quality of services and innovation, and internal and external leadership practices, the compensation is determined<br />
by representatives of the top senior management.<br />
� Governance oversight of economic, environmental and social impacts<br />
<strong>Sustainability</strong> considerations are indirectly addressed by the Board in its review of ongoing priority strategic<br />
considerations. There is not yet a direct mechanism for specific overview of broader sustainability issues, but this will<br />
be integrated into future Board reporting and agendas beginning in 2007. The Board has already been briefed, and<br />
its buy‐in secured, for <strong>Aramex</strong>’s commitment to sustainability and we aim to continually increase the Board’s<br />
knowledge of sustainability management. The Board will be briefed on progress against sustainability targets at<br />
every board meeting. There are not yet any additional requirements for qualifications for board members relating to<br />
broader sustainability aspects such as environment, but this is subject to change in the near future.<br />
� Internal Codes and Values Statements<br />
Core Values and Principles Document: In <strong>2006</strong> we underwent a process to clearly articulate the core values and<br />
principles of its culture. The purpose was to help ensure strong integrity and maintain <strong>Aramex</strong>’s unique culture in a<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 20
usiness climate of rapid growth. This process involved the participation of a large number of leaders in the <strong>Aramex</strong><br />
network; the resulting ‘<strong>Aramex</strong> Culture – Core Values and Principles’ document has been released in early 2007.<br />
Code of Conduct: Also in <strong>2006</strong>, we developed a Code of Conduct that captured the key integrity elements of the<br />
culture and further outlined broader sustainability considerations across ethical, economic, environmental and social<br />
dimensions. The Code will be launched in 2007, with a commitment to both training and a policy of sign‐off by all<br />
employees.<br />
� Management Systems and Continuous Improvement<br />
Among our management systems, all processes that affect the quality of service provided to the customers have<br />
related procedures, policies and standards in the Documented Quality Management System (DQMS). These<br />
procedures, policies and standards detail the accountability for implementation and for quality assurance of the<br />
processes. All documented procedures required in the international standard ISO9001:2000 are also defined. The<br />
DQMS is implemented, maintained and continually improved in accordance to the changes in the business and is<br />
always directed to better meet the needs of our customers.<br />
We have developed our DQMS to be compliant with ISO 9001:2000 and it is certified by British Standards Institute<br />
(BSI) for “The provision of an international express and domestic express courier and freight forwarding logistics<br />
service”.<br />
<strong>Aramex</strong> deploys a continual improvement philosophy throughout the entire organization by:<br />
� Having well qualified, competent and trained Quality Representatives in our stations around the world, to<br />
make sure our corporate policies, standards, and procedures are monitored and followed.<br />
� Planning of improvements of the quality system within the framework of management reviews. The output<br />
of this planning is expressed in the form of quality system objectives at all relevant departments within the<br />
organization. <strong>Aramex</strong> Quality objectives can be classified into:<br />
• Policy objectives: these objectives are principal and strategic objectives that apply to the whole<br />
organization.<br />
• Quality Performance objectives: these objectives set specific, measurable targets for improving<br />
operational performance. They are established, documented, and monitored through the performance<br />
appraisal on semi‐annual basis.<br />
• Service and Product Quality objectives: these objectives pertain to the improvement of services and<br />
products, as well as maintaining a consistent acceptable service level that meets <strong>Aramex</strong> standards,<br />
which is verified through the QSA audits.<br />
• Quality System objectives: These objectives relate to the improvement of quality system processes<br />
and performance.<br />
� The establishment of several awards, which provides appropriate recognition to those individuals and<br />
teams at <strong>Aramex</strong> who contribute significantly to the vitality and strength of the company.<br />
We adopt additional management systems and related tools with regard to specific activities. For example, we have<br />
developed a Vehicle Tracking System, Stock Management System, and other technical systems that support<br />
management and quality procedures. Our approach to management systems is further detailed at the beginning of<br />
relevant sections of this report.<br />
� External Management System Standards and External Commitments<br />
In addition to being ISO9001:2000 certified, as we move forward in adopting sustainability management we are<br />
planning to use an increasing range of external management system standards and sustainability assurance and<br />
quality standards. We have used the Global <strong>Report</strong>ing Initiative’s G3 <strong>Report</strong>ing Guidelines for this report, and we are<br />
committed to using several external management systems standards to provide<br />
insights and guide our work in the development of enhanced <strong>Aramex</strong> management<br />
systems. The standards we will be using include the AA1000 for effective stakeholder<br />
engagement and overall sustainability assurance; the OHSAS18000 for guidance on<br />
health and safety, the ISO14000 for guidance on environmental management systems,<br />
the SA8000 with regard to managing labor conditions, and the London Benchmarking<br />
Group model for our community investment. For most of these management system<br />
tools, we intend to ensure that we could successfully be audited against them by end<br />
With the release<br />
of this report we<br />
commit ourselves<br />
to the UN Global<br />
Compact<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 21
of 2009. However, we have not yet committed to those audits until we can assess both the value of the above<br />
systems to our work, and any additional value from accreditation of such systems.<br />
More information on our management systems can be found in our Disclosures on Management Approach section,<br />
and in the relevant sections of this report.<br />
Based on our sustainability performance assessment and issues identification, we are committed to the<br />
Precautionary Principle with regard to the environment as evidenced by our direct statement of concern regarding<br />
the human contribution to global warming, and our commitment to be the first company in our sector to be carbon<br />
neutral.<br />
With the release of this report we also commit ourselves to the United Nations Global Compact. Our newly<br />
developed internal Code of Conduct is consistent with the Global Compact.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 22
Memberships<br />
<strong>Aramex</strong>, based on its location and operation, is a member of the following entities.<br />
Freight<br />
Logistics and<br />
Ground<br />
Operations<br />
Express<br />
Information<br />
Technology<br />
Entity<br />
Member of International Air Transport Association (IATA)<br />
Members on individual station basis. All our other stations are under processing to become IATA‐approved.<br />
We are IATA‐approved agents with individual CODE/CASS numbers in each of: Amman, Amsterdam,<br />
Bahrain, Bangalore, Beirut, Birmingham, Cairo, Chennai, Cork, Dammam, New Delhi, Doha, Dubai, Jeddah,<br />
Manchester, Mumbai, Riyadh, Shannon, and New York.<br />
Members of Fédération Internationale des Associations de Transitaires et Assimilés / "International<br />
Federation of Freight Forwarders Associations (FIATA)<br />
Members of The International Air Cargo Association (TIACA)<br />
Member of World Freight Alliance (WFA)<br />
Member of the Supply Chain and Logistics Group.<br />
Member of Global Distribution Alliance (GDA)<br />
Member of Express Delivery and Logistic Association<br />
Member of Information Technology Association of Jordan (INTAJ)<br />
Quality BSI Registered (British Standards Institute)<br />
Security<br />
Member of Transported Assets Protection Association (TAPA) – Jordan<br />
Member of Transportation Security Association (TSA) ‐ USA / <strong>Aramex</strong> is an indirect air carrier<br />
Member of Customs Trade Partnership Against Terrorism (C‐TPAT) ‐ USA / Customs Dept. <strong>Aramex</strong> NYC is<br />
member<br />
Department of Transport (DfT) ‐ UK / TwoWay and Priority are listed agents<br />
Others <strong>Aramex</strong> – JFK Membership:<br />
KAMCO: Brokerage<br />
ABANA: Arab Banks for North America<br />
MCAA: Association for messenger companies ( Recently joined)<br />
� Forums, Foundations, Associations, and NGOs:<br />
<strong>Aramex</strong>, through international forums, business associations and civil society organizations and foundations, is<br />
involved in the following entities as an active member:<br />
� The World Economic Forum<br />
� The Arab Foundation for Sustainable Development "Ruwwad"<br />
� The American Chamber of Commerce in Jordan (AmCham‐Jordan)<br />
� Jordan European Business Association (JEBA)<br />
� World Trade Center – Jordan Chapter<br />
� Jordan Exporters Association<br />
� Young Entrepreneurs Association (YEA)<br />
� INJAZ ‐ Jordan<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 23
� CEO memberships or involvements in public policy and civil society<br />
<strong>Aramex</strong> Founder and CEO is also an active member in different forums and high profile entities and committees that<br />
are working on public policy issues. Such as:<br />
The World Economic Forum<br />
Founding Member of the Executive Committee of the “Arab Business Council" (2003‐<strong>2006</strong>)<br />
The Arab Business Council (ABC) is composed of the leading representatives of the Arab private sector who are<br />
committed to enhancing economic competitiveness in the Arab world.<br />
The ABC aims to facilitate cooperation among the leading business institutions and corporate leaders in the Arab<br />
world in order to help equip their societies to compete in the global economy and to contribute to the development<br />
of an equitable society. The ABC is acknowledged as a credible and legitimate voice of the Arab business community<br />
within the international community.<br />
“Kuluna Al‐Urdun” (We Are All Jordan) Initiative<br />
Member<br />
This initiative aims to identify and address Jordan's national, social, political and economic priorities, as well as reach<br />
a national consensus on mechanisms that assure that those priorities are met.<br />
Young Presidents Organization (YPO)<br />
Founding Member of the Jordan Chapter / Middle East and North Africa Area Chairman 2003 to 2005<br />
YPO develops “Better Leaders through Education and Idea Exchange” by providing a challenging environment that<br />
promotes the exchange of ideas and shared experiences. By inspiring the continual improvement of each individual<br />
leader, YPO facilitates the acquisition of knowledge—and, more importantly, the development of wisdom.<br />
Ethics, and avoidance of bribery and corruption<br />
We believe we have an excellent record with regard to avoiding bribery and corruption, which are strictly forbidden<br />
at <strong>Aramex</strong>. Our main tool for monitoring risks relating to bribery and corruption in our business units are our<br />
standard financial accounting and auditing – we do not currently undertake extra analysis of such risks. Our Code of<br />
Conduct, which will be adopted aggressively in 2007, provides guidance on this issue and more detailed policies and<br />
procedures will be developed, as well as a tracking mechanism for incidents and actions taken. In 2007 we will be<br />
training employees on these enhanced anti‐bribery and anti‐corruption policies and procedures.<br />
We feel that our sector in the Middle East and Gulf could benefit from collective efforts to help ensure the integrity<br />
of the industry. In 2007, we hope to initiate a multi‐stakeholder project together with high credibility NGOs in the<br />
field of transparency and the reduction of bribery and corruption, and with willing companies, in an effort to ensure<br />
a level playing field.<br />
We have never been the subject of legal actions for anti‐competitive behavior, anti‐trust or monopoly practices, or<br />
profiteering. We are confident in competing legitimately and fairly with other companies. For our compliance with<br />
Law, there were no instances of significant monetary fines or non‐monetary sanctions for non‐compliance with laws<br />
and regulations.<br />
Public Policy and Political Affiliations<br />
Our public policy positions are consistent with our sustainability positions and commitments. There are no notable<br />
public policy issues in which we are aggressively involved. We support public policy development in areas of concern<br />
to us where existing public policy is lacking. We do not make any financial or in‐kind donations to any political parties,<br />
politicians, candidates, or related institutions.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 24
Disclosures on Management Approach<br />
The Global <strong>Report</strong>ing Initiative’s G3 Guidelines for <strong>Sustainability</strong> <strong>Report</strong>ing request that we clearly present our<br />
management approach to each aspect listed across economic, environmental and social performance in the GRI. As<br />
such, we summarize our management approaches here. Additional information on our management approaches can<br />
often be found in relevant sections.<br />
� Our approach to managing Economic Impacts<br />
Economic Performance: Our economic performance is well managed through a combination of our Documented<br />
Quality Management System, the Sage Accpac financial reporting system, and our internal controls environment<br />
including periodic and continuous internal audit reviews. Our financial accounts are guided by the International<br />
Financial <strong>Report</strong>ing Standards (IFRS) and are also assured by external auditors. We are ISO9001 certified for our<br />
quality of management practices including economic management. We have designated Quality Representatives in<br />
almost all of our stations.<br />
Market Presence: Our human resources management system allows for tracking and oversight of local hiring. Our<br />
Code of Conduct stipulates the necessity of complying with the minimum wage requirements per country or location<br />
in all of our markets. Our Stock Management System tracks a growing number of materials procurement, including<br />
the location of the sourcing of the items. We do not have any policy in place that stipulates local purchasing criteria.<br />
We can also track our market presence and costs of goods purchased in various markets through a review of our<br />
costs on a station‐by‐station basis using our financial management systems.<br />
Indirect Economic Impacts: We currently do not have a system for managing our indirect economic impacts.<br />
� Our approach to managing Environmental Impacts<br />
Overall: Although we do not currently have an ‘environmental management system’ in place, in some instances we<br />
use other systems that yield similar information for the majority of our operations (e.g., supporting documentation<br />
from financial accounting systems can yield environmental data and tracking). However, our TwoWay Vanguard<br />
operations have an ISO14001 certified environmental management system in place. In 2007 we will take serious<br />
steps to implement a company‐wide environmental management system.<br />
Materials: Our Stock Management System tracks a growing number of our procurements, including by unit and by<br />
weight, allowing us to assess and monitor our consumption. Our Fleet Management System –currently under<br />
implementation– will track fuel purchases and consumption.<br />
Energy: Documentation of our electricity bills allows us to determine our electricity (indirect energy) consumption.<br />
Water: Documentation of our water bills allows us to determine the majority of our water consumption. However, in<br />
some locations we pay a flat fee for water and thus precise water consumption is not readily available.<br />
Biodiversity: We do not have any system for managing any impact on biodiversity. We consider our biodiversity<br />
impact to be minimal.<br />
Emissions, Effluents, and Waste: We do not yet have any systematic mechanism for calculating emissions. Our Fleet<br />
Management System being implemented will track fuel consumption, fuel efficiency, kilometers driven, types of fuel,<br />
etc., allowing for good quality emissions data. We currently calculate effluents and waste based on input quantity (of<br />
water and materials), since no recycling occurs.<br />
Products and Services: There are currently no systems in place to manage the environmental impact of this aspect,<br />
although the amount of plastic and other materials used is measured using our Stock Management System and thus<br />
forms the basis for measured performance improvement.<br />
Compliance: Our stations must be aware of environmental laws and regulations and adhere to them. In many cases,<br />
the leasing companies share or lead in some of these responsibilities – for example, in most cases, the leasing<br />
company is responsible for undertaking obligatory maintenance and emissions testing.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 25
Transport: There are currently no systems in place to manage the environmental impact of this aspect.<br />
For further information on environment management systems, see pages 83 ‐91.<br />
� Our approach to managing Social Impact – Labor<br />
<strong>Aramex</strong> has in place a human resources management system that captures many of the GRI Labor aspects. A<br />
comprehensive new human resources system is being implemented in 2007. The HR management system is the<br />
platform for HR management by the HR department. Depending on the size of the station, we have either full‐time<br />
or part time (full‐time persons with several areas of responsibilities) HR representatives appointed at all stations.<br />
Employment: Employment‐related data is managed daily using the human resources management system.<br />
Labor‐Management Relations: There are currently no employee or representative forums within the company, and<br />
thus no supporting systems. Labor‐management relations are assessed and managed using regular meetings,<br />
performance evaluations, and surveys and follow up action plans.<br />
Occupational Health and Safety: Safety is currently the responsibility of operations managers and security managers<br />
within the stations, including adherence to any specifications outlined in our Documented Quality Management<br />
System. <strong>Aramex</strong> will begin to put in a place a comprehensive OHS management system in 2007.<br />
Training and Education: In 2007 we will begin systematically tracking training and education through the soon‐to‐be‐<br />
launched <strong>Aramex</strong> corporate university.<br />
Diversity and Equal Opportunity: Performance against our stated practices relating to diversity and equal<br />
opportunity are periodically checked by our HR department. We track gender and age information, but not<br />
information on religion.<br />
For further information on HR management systems, see pages 42 ‐ 58.<br />
� Our approach to managing Social Impact – Human Rights<br />
We abide by the laws and regulations in the countries where we operate, or our own Code, whichever is the more<br />
stringent. Most human rights related aspects are managed through the HR department.<br />
Investment and Procurement Practices: Our significant procurement practices – in particular our sub‐contracted<br />
Indian operations, include clauses relating to minimum working age and working hours. These are periodically<br />
verified. Our investment practices currently do not include human rights screening.<br />
Non‐discrimination: We currently do not have in place a systematic process for documenting cases of discrimination<br />
within our management system. With the launch of our Code of Conduct in 2007, we are also implementing a more<br />
effective procedure for reporting cases of discrimination that will give employees a higher level of confidence in<br />
reporting any incidents.<br />
Freedom of Association and Collective Bargaining: We do not have any policy against Freedom of Association and<br />
Collective Bargaining.<br />
Abolition of Child Labor: Our policies specifically state that we abide by international law and that we only hire high<br />
school graduates (except in some locations). Our HR system tracks the age of all employees. We do not have a<br />
system in place to verify the age of employees or contractors of our sub‐contracted operations, but intend to<br />
implement this upon a review of major risks in 2007.<br />
Prevention of Forced and Compulsory Labor: Our policies specifically state that we abide by international law and<br />
include no forced labor. In cases where drivers routinely run long shifts, their agreements fully comply with<br />
international standards. Our Fleet Management System currently being implemented is designed to more accurately<br />
track the working hours of every courier driver, thus improving our ability to manage this aspect.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 26
Complaints and Grievance Practices: The HR department has a procedure (HRT 513HR) for processing Employee<br />
Grievance. This procedure covers the process of handling a grievance for any employee who feels that he or she is<br />
being treated unfairly.<br />
Security Practices: <strong>Aramex</strong> has published security procedures that cover all aspects of the business cycle. <strong>Aramex</strong><br />
stations comply with their local governmental security rules and regulations at each site, <strong>Aramex</strong> also has 2 TAPA<br />
(Transported Assets Protection Association) certified sites in Jordan, and is working on preparing 4 more sites in the<br />
Middle East to be TAPA certified.<br />
Indigenous rights: To our understanding, this does not materially impact our business.<br />
� Our approach to managing Social Impact – Society<br />
Community: We currently respond to community concerns about our operations on a case by case basis. We intend<br />
to put in systems to better track and monitor concerns relating to noise, driver behavior, impact on specific<br />
communities near our operations, and other issues. We currently track our positive investments in society with a<br />
specific line item in our Sage Accpac system for charitable donations. However, this line item significantly<br />
underestimates our contribution vis‐à‐vis the London Benchmarking Model for calculating charitable investment.<br />
This line item does not include in‐kind donations, volunteer time, leveraged donations (such as our campaigns to<br />
secure and then transport aid for disaster‐struck zones), or investments in society with a commercial benefit.<br />
Corruption: Bribery and corruption are strictly forbidden at <strong>Aramex</strong>. Our main tool for monitoring risks relating to<br />
bribery and corruption in our business units are our standard financial accounting and auditing ‐ we do not currently<br />
undertake extra analysis of such risks. Our Code of Conduct which will be adopted aggressively in 2007 provides<br />
guidance on this issue and more detailed policies and procedures will be developed, as well as a tracking mechanism<br />
for incidents and action taken.<br />
Public Policy: Any financial contributions made to political parties would be transparently accounted for as such in<br />
our Sage Accpac system. There are no such financial contributions. Our public policy position, when we have such, is<br />
consistent with our business and sustainability strategy.<br />
Anti‐competitive Behavior: It is our policy not to engage in anti‐competitive behavior.<br />
Compliance: It is our policy to be compliant with all laws and regulations in the countries where we operate. Our<br />
country managers, regional managers, and legal department are responsible for our performance and track our<br />
performance. Our legal department would become engaged in any cases of non‐compliance.<br />
� Our approach to managing Social Impact – Product Responsibility<br />
In general, our InfoAXS system tracks the majority of information relating to our products and services.<br />
Customer Health and Safety: We comply with TAPA and IATA standards with regard to product safety, particularly as<br />
it relates to safe handling of products.<br />
Product and Service Labeling: We comply with good practice on the labeling of our products and services, including<br />
for example the identification and proper handling of hazardous waste. This information is collected by the Freight<br />
division through information tracking systems. We also have at least one individual in all of our Express Outbound<br />
Operations who is trained to deal with dangerous and hazardous materials.<br />
Marketing Communications: Our policy is to adhere to ethical and transparent marketing communications in all<br />
related types of communications.<br />
Customer Privacy: Our policy is to ensure all sufficient conditions are set to protect customer confidentiality, and to<br />
never compromise or allow customers’ information to leak, directly or indirectly, knowingly or negligently, as stated<br />
in our Code of Conduct and internal policies.<br />
Compliance: It is our policy to be compliant with all laws and regulations relating to the provision and use of<br />
products and services in the countries where we operate.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 27
CREATING ECONOMIC VALUE<br />
Our Perspective<br />
We believe that we will be rewarded financially for continuing excellence<br />
in service quality, customer care, and innovation towards sustainability.<br />
Long-Term Strategic Goal<br />
B e r e c o g n i z e d a s t h e 5 t h g l o b a l l o g i s t i c s a n d<br />
e x p r e s s t r a n s p o r t a t i o n c o m p a n y i n t h e w o r l d .
Our Contribution to Economic Growth and Development<br />
Inside this Section:<br />
� Facilitating regional and global trade and commerce Page 30<br />
� Factoring the global trend towards sustainable development Page 30<br />
� Our Economic Performance and Direct Impacts Page 30<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Acquired Freight Professionals,<br />
TwoWay Vanguard, and Docman<br />
� Growth in shipments 37.8%<br />
� Growth in revenue 59.7%<br />
� Growth in profitability 28.0%<br />
� Growth in revenue of 18%<br />
� Growth in profitability of 20%<br />
� To be recognized as the 5 th global<br />
logistics and express<br />
transportation company by 2010<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 29
� Facilitating regional and global trade and commerce<br />
Our purpose is to enable and facilitate global trade and commerce. Our primary indicator<br />
for measuring our success in achieving this goal is the number of shipments delivered. (In<br />
this report, ‘shipments’ refers to the total number of packages and shipments for all<br />
product lines, unless otherwise noted). We have achieved phenomenal growth over recent<br />
years, including 45% growth in shipments in 2005 and 38% growth in shipments in <strong>2006</strong>.<br />
This growth is partly organic growth and partly as a result of the implementation of our<br />
strategic plan that calls for rapid growth through an aggressive acquisition strategy.<br />
Number of Shipments<br />
2004 2005 <strong>2006</strong><br />
2005<br />
Growth<br />
<strong>2006</strong><br />
Growth<br />
Shop&Ship 14585 217527 334442 1391% 54%<br />
Express 2557685 2927576 3303228 14% 13%<br />
Domestic 8817606 13385340 19166672 52% 43%<br />
Freight 127764 165179 202254 29% 22%<br />
Total 11519644 16697627 23008602 45% 38%<br />
Total number<br />
of shipments<br />
grew by 45%<br />
in 2005 and<br />
38% in <strong>2006</strong>.<br />
� Factoring the global trend towards sustainable development<br />
The dramatic economic boom in the Arabian Gulf and many parts of the Middle East and Asia represents outstanding<br />
opportunities for continued growth and contribution to trade and commerce, as do our growing links and business<br />
with the rest of the world. However, care must be taken by all stakeholders that this economic development is<br />
sustainable, and that corresponding social indicators and poverty reduction levels also improve at similar or better<br />
rates. In many of the regions where we operate and particularly the Arab world, the young demographic is enormous<br />
and requires massive economic development and job creation within a very limited time span. We believe that this<br />
growth can be better achieved through global linkages in trade, commerce, and other connections which we help to<br />
facilitate. Furthermore, healthy economies and prosperous and socially dynamic societies require an ecologically<br />
healthy natural environment. Minimizing environmental impact is perhaps something not yet seriously considered in<br />
the region, but we believe requires immediate attention.<br />
Indeed, climate change poses significant opportunities and risks for our company. The impending emergence of a<br />
carbon‐restricted economy has many implications for <strong>Aramex</strong>, not least:<br />
� the possibility of reduced trade and movement of goods to reduce environmental impacts, where travel<br />
across distances outweighs benefits of local production<br />
� the costs of carbon associated with shipping<br />
However, we see these more as opportunities to reduce our environmental impact while making our services more<br />
competitive and attractive in an economy where low environmental impact is a distinct competitive advantage. Not<br />
only could we potentially eliminate loss of business, but we might actually increase business if we can contribute to<br />
the overall competitiveness of products. We intend to launch low‐carbon and zero‐carbon services at the earliest<br />
feasible timeline as outlined in this report.<br />
� Our Economic Performance and Direct Impacts<br />
Profitability<br />
<strong>Sustainability</strong> is fully aligned with the business profit imperative. <strong>Sustainability</strong> is a core management approach that<br />
recognizes shareholders as key stakeholders and aims to secure sustained profits over the long‐term. Profitability<br />
should be improved with sustainable practices. We aim to be rewarded financially in terms of key dimensions of our<br />
sustainability approach including excellence in service quality, customer care, employee relations, health and safety,<br />
and innovation towards environmental sustainability. We intend for sustainability management and reporting to<br />
assist us in achieving our mission of being recognized as the fifth global logistics and express transportation service<br />
provider by 2010.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 30
In <strong>2006</strong>, our profit increased 28% to<br />
25.928M USD, following growth of<br />
56% in 2005. As with revenue and<br />
shipments, this was driven by a mix of<br />
both organic growth and growth by<br />
acquisition.<br />
30,000,000<br />
25,000,000<br />
20,000,000<br />
15,000,000<br />
10,000,000<br />
5,000,000<br />
0<br />
Profit (USD)<br />
2004 2005 <strong>2006</strong><br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 31<br />
Profits<br />
Economic Impacts<br />
We are a rapidly growing company with a wide variety of economic impacts. Some of our main direct economic<br />
impacts are captured in the following table.<br />
Direct Economic Value Generated and Distributed (USD)<br />
2004 2005 <strong>2006</strong><br />
Total Revenue 188,736,413 232,492,773 371,345,471<br />
Operating Costs 133,413,049 158,654,600 266,239,916<br />
Employee Wages and<br />
Benefits 40,893,631 51,921,842 76,847,719<br />
Interest Exp 233,184 243,606 901,029<br />
Taxes 881,924 1,068,830 1,208,132<br />
Contribution and<br />
Donations 345,075 220,362<br />
Economic Value<br />
Retained 12,957,351 20,258,821 25,928,313<br />
Market Presence<br />
Our growth also involves rapid geographical expansion and growth in new markets. We aim to contribute positively<br />
to economic development in the communities where we operate. The charts on the following two pages help<br />
indicate the distribution of our overall direct economic value across the main regions where we operate.<br />
Of note is the significant growth in several markets including the tremendous growth in North Africa (in part as a<br />
result of the acquisition of Freight Professionals on January 1, <strong>2006</strong>), and including a major increase in revenue in<br />
Europe (as a result of the acquisition of TwoWay Vanguard in April). With regard to expenses and suppliers, we<br />
currently do not have any policy or practices in place for spending on locally‐based suppliers at significant locations<br />
of operation – we hope to explore our options on this in greater detail in the next year. Regarding donations, we talk<br />
later in this report in the investment in society section about enhancing the geographic distribution of charitable<br />
donations, the majority of which positively impact Jordan (through the GSO), and the Levant (including Jordan, Iraq,<br />
Syria, Lebanon, and the Occupied Palestinian Territories).
Total<br />
Revenues<br />
Operating<br />
Costs<br />
Employee<br />
wages and<br />
benefits<br />
Interest<br />
Exp<br />
Overall Direct Economic Value Distributed across the Main Regions<br />
Levant North Africa UAE KSA and Upper Gulf Europe and N.A India and Far East GSO and BERMUDA<br />
18%<br />
9%<br />
11%<br />
20%<br />
11%<br />
5%<br />
11%<br />
16%<br />
19%<br />
2004 2005 <strong>2006</strong><br />
18%<br />
18%<br />
6%<br />
18%<br />
20%<br />
6%<br />
15%<br />
18% 16%<br />
14% 12%<br />
9% 7%<br />
7% 8%<br />
11% 20%<br />
26%<br />
17%<br />
19%<br />
16%<br />
10%<br />
19%<br />
11%<br />
18%<br />
18%<br />
8%<br />
16%<br />
5%<br />
9% 15% 4%<br />
14% 4%<br />
9%<br />
26%<br />
1% 0%<br />
19%<br />
59%<br />
25%<br />
21% 0%<br />
0%<br />
16%<br />
26%<br />
51%<br />
0% 1%<br />
10%<br />
26%<br />
38%<br />
0%<br />
0%<br />
14%<br />
8%<br />
29%<br />
4% 6%<br />
24%<br />
22%<br />
13%<br />
9%<br />
13%<br />
14%<br />
13% 6%<br />
25%<br />
8% 0% 0%<br />
Levant North Africa UAE KSA and Upper Gulf Europe and N.A India and Far East GSO and BERMUDA<br />
38%<br />
18%<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 32<br />
0%<br />
36%
Taxes<br />
Contributions<br />
and<br />
Donations<br />
Economic<br />
Value<br />
Retained<br />
Overall Direct Economic Value Distributed across the Main Regions (continued)<br />
Levant North Africa UAE KSA and Upper Gulf Europe and N.A India and Far East GSO and BERMUDA<br />
1%<br />
2%<br />
0%<br />
44%<br />
52%<br />
2004 2005 <strong>2006</strong><br />
5%<br />
0%<br />
1%<br />
29%<br />
21%<br />
31%<br />
20%<br />
47%<br />
1%<br />
3% 1%<br />
0%<br />
0%<br />
43%<br />
0%<br />
0%<br />
5%<br />
1%<br />
50%<br />
41%<br />
0%<br />
1%<br />
28%<br />
18%<br />
14%<br />
15%<br />
1%<br />
0%<br />
14%<br />
19% 0%<br />
44%<br />
2% 3%<br />
0%<br />
0%<br />
43%<br />
10%<br />
11%<br />
1%<br />
5%<br />
Levant North Africa UAE KSA and Upper Gulf Europe and N.A India and Far East GSO and BERMUDA<br />
20%<br />
61%<br />
35%<br />
18%<br />
25%<br />
15%<br />
27%<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 33<br />
1%<br />
18%<br />
1%<br />
8%<br />
3%<br />
3%<br />
37%<br />
1%<br />
0%<br />
0%
When assessing our local impacts relating to human resources management, our standard entry level wages meet all<br />
minimum wage requirements in the countries where we operate. With regard to local leadership, we do not have a<br />
formal policy of local hiring, but support it in principle. In 2005 we increased the number of managers in our country<br />
stations by 22 people, all of them locally hired. In <strong>2006</strong> our performance declined slightly, due to the opening of an<br />
office in Jeddah, Saudi Arabia, which we have initially staffed with one locally hired and 16 ex‐pat managers but<br />
intend to transition to locally‐led management. Excluding Jeddah, our performance would have continued its<br />
uptrend to 86%.<br />
35<br />
17%<br />
Locally Hired Management<br />
2004 2005 <strong>2006</strong><br />
169<br />
83%<br />
35<br />
15%<br />
191<br />
85%<br />
Locally Hired Ex‐Pats<br />
53<br />
20%<br />
217<br />
80%<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 34
CREATING SOCIAL VALUE<br />
Our Customer Relationships Page 36<br />
Our People: Human Resources Development Page 42<br />
Health, Safety, and Security Page 59<br />
Our Cities: Urban Impacts Page 66<br />
Our Communities: Investment in Society Page 71<br />
Our Business Partners and the GDA Page 80
OUR CUSTOMER RELATIONSHIPS<br />
Our Perspective<br />
We believe that our own success depends on the success of our<br />
customers, and we must always regard our customers as a long-term<br />
business partner, and help their business to grow to our mutual benefit.<br />
Long-Term Strategic Goal<br />
Innovate and deliver a wide range of cost effective, secured, on-time, and<br />
customized services using the best technology solutions for our customers.
Inside this Section:<br />
� Overview Page 38<br />
� Customer Management Page 38<br />
� Customer Service Page 39<br />
� Customer Management Tools Page 39<br />
� Customer Engagement Page 39<br />
� Service Level Measurement Page 41<br />
� Care for the customers’ documents and goods and Customer Privacy Page 41<br />
� Responsible Marketing Page 41<br />
� Product and Service Compliance with Laws Page 41<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Put in place an Interactive<br />
Frontline SharePoint on<br />
company intranet to share<br />
knowledge<br />
� Established customer service<br />
structures across the network,<br />
key performance indicators, and<br />
customer service core values<br />
that would lead to creating a<br />
customer focused culture<br />
� Launched The Golden Customer<br />
Service Award<br />
� Maintain 95% in customer<br />
satisfaction<br />
� Maintain 95% in on‐time<br />
delivery rate<br />
� Build capacity of frontline<br />
personnel across the network<br />
� Increase customer tools access<br />
through aramex.com, PACK, and<br />
ePOD<br />
� Increase Sage Accpac CRM<br />
development and utilization<br />
� Structuring Contact Center<br />
processes, applications and<br />
procedures<br />
� Conduct customer survey<br />
� Positioning <strong>Aramex</strong> as the<br />
company of choice in the region<br />
� Exceed 95% in customer<br />
satisfaction for all products and<br />
services<br />
� Exceed 95% on‐time delivery<br />
rate for all products and services<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 37
Overview<br />
Our Customer Relationships<br />
<strong>Aramex</strong> has a diverse customer base, totaling over 50,000 customers in the year <strong>2006</strong>, spanning a broad geographic<br />
area, concentrated mainly in the Middle East, North Africa, Europe, South Asia and North America.<br />
The customers’ spectrum ranges from individuals to blue chip companies in both retail and wholesale. <strong>Aramex</strong><br />
serves many customer segments including trading companies, pharmaceutical companies, banks, service and<br />
information companies, manufacturing and regional distribution companies and express companies.<br />
In response to the growing diversity of its customers, <strong>Aramex</strong> is continuously developing and offering a broad range<br />
of services; from express services to door‐to‐door airfreight forwarding to customized special services. In addition to<br />
the broad range of services, we offer our customers value‐added services to meet their ever increasing demands.<br />
Customer Management<br />
<strong>Aramex</strong> aims at continuously developing consistent, dependable and convenient interaction with customers in every<br />
point of contact to build better customer relationships.<br />
We understand that being a customer focused organization means<br />
having a sustainable framework that involves focusing strategies,<br />
business processes, people, training, knowledge and organizational<br />
structures around customers in order to build strong customer<br />
relationships; hence the <strong>Aramex</strong> structure is team based. At the heart<br />
of its teams, <strong>Aramex</strong> Customer Teams are the single point of contact<br />
for customers. The teams manage the customer relationship from<br />
acquisition to service to strengthening. Using this model, <strong>Aramex</strong><br />
provides customers with efficient, consistent and convenient<br />
interaction.<br />
Customer teams are segment (industry) based, enabling further<br />
specialized and customized customer support on a sector by sector<br />
basis. This enables better understanding of customer needs and the<br />
building of a knowledgeable team to respond to customer needs and<br />
develop them further.<br />
Over the next two years <strong>Aramex</strong> will further establish grass root principles, as follows:<br />
Principle 1: Know more about customers; needs, value and anticipating relationship<br />
Customer Service Core Values:<br />
1. Empowerment<br />
2. Timeliness<br />
3. Customer Centric<br />
4. Consistency<br />
5. Proactiveness<br />
6. Courtesy<br />
7. Knowledge and<br />
Competency<br />
8. Efficiency<br />
9. Pride of Work<br />
Principle 2: Consolidate and make available all customer interaction information from all points of contact<br />
Principle 3: Continuously develop a customer centric infrastructure that can consistently support the customized<br />
treatment of each customer<br />
Principle 4: Assign dedicated people, process and technology resources to achieve profitable results<br />
Ultimately, by implementing CRM solutions, customers can expect:<br />
1. Lowered cost, and improved service<br />
2. Increased efficiency and effectiveness<br />
3. Improved communications<br />
4. Integration of end‐to‐end business processes<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 38
� Customer Service<br />
Our customers entrust us with their valuable and important documents and<br />
goods, and entrust us to deliver these documents and goods on‐time in<br />
order to meet their critical business and personal needs. We take this<br />
confidence and trust and responsibility extremely seriously.<br />
One of the ways in which we demonstrate our commitment to customer<br />
service is through providing excellent on‐time services. In <strong>2006</strong>, our overall on‐time delivery rate was 94% covering<br />
the services and products that we offer our customers in every part of the world. Our international network allows<br />
us to successfully achieve this core commitment.<br />
� Customer Management Tools<br />
To facilitate customer interactions, <strong>Aramex</strong> has invested in its customer tools which are the means by which<br />
customers access or request <strong>Aramex</strong> services. <strong>Aramex</strong> Customer tools include aramex.com, PACK, and ePOD which<br />
are designed to provide customers with convenient channels and improve service at no cost to customers.<br />
In managing customer relationship, <strong>Aramex</strong> addresses customers' needs through:<br />
� Global Tracking System on www.aramex.com<br />
Customers anywhere in the world at any time can communicate with <strong>Aramex</strong> to request various services and make<br />
inquiries. Customer in any part of the world, and through the global tracking system, can track in an speedy and<br />
simplified way all the outbound, inbound, and third party shipments.<br />
www.aramex.com is designed with the customer in mind; where specific tabs are<br />
created to ensure ease of use; "My Delivered Shipments", "My Pending Shipments",<br />
and “My Exceptions Shipments". Customers can also prepare their shipments online<br />
and, print waybills, create and manage their address books, view shipment history,<br />
and generate customized reports. Online booking will automatically trigger a pickup<br />
request which is directly queued with the dispatcher for the shipment origin entity.<br />
PACK is a software that allows account customers to manage their shipping needs<br />
electronically. PACK enables customers to build consignee lists, alert shipments, and<br />
provides online communication. PACK interfaces with <strong>Aramex</strong> systems online to send<br />
and receive shipments information.<br />
ePOD is the Electronic Proof Of Delivery. With ePOD customers can be notified on the status of their shipments from<br />
pickup time till delivery through their email or fax. The service saves customers the cost and time of manually<br />
tracking their shipments. ePOD notifications can be customized to suit customer business needs.<br />
� Contact Center<br />
<strong>Aramex</strong> is investing in further developing contacting centers to enable customers to communicate seamlessly,<br />
through voice, web, email, fax, WAP, and XML. Currently, contact centers handle the majority of shipment tracking<br />
and pickup requests placed by customers.<br />
� Customer Engagement<br />
<strong>Aramex</strong> engages customers, mainly, through its Customer Teams. Additionally, <strong>Aramex</strong> conducts tailor‐made surveys<br />
to gather customers’ feedback and measure their satisfaction with services offered.<br />
In 2004, an independent market research company conducted a comprehensive survey in Amman, Dubai, Kuwait,<br />
Riyadh, Jeddah, Cairo, and Beirut, reaching for more than 1000 customers to study their satisfaction towards the<br />
eight listed attributes:<br />
1. Professionalism<br />
2. Customer Care<br />
3. Speed<br />
4. Flexibility<br />
% on‐time<br />
delivery<br />
5. Wide Range of Services<br />
6. Competitive Pricing<br />
7. Friendliness<br />
8. Global Coverage<br />
On‐time delivery rate<br />
2004 2005 <strong>2006</strong><br />
NA 88% 94%<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 39
Based on the customers’ responses across all target stations, <strong>Aramex</strong> scoured an average of 95% for its well rounded<br />
services in the Express, Domestic and Freight services.<br />
2.61 2.62 2.66<br />
Price Satisfactory<br />
Delivery<br />
Time<br />
2.57<br />
2.6<br />
2.53<br />
Price Door to Door<br />
Pick up and<br />
Delivery<br />
Price Satisfactory<br />
Delivery<br />
Time<br />
2.54 2.52<br />
Express Freight Domestic<br />
Performance Ratings 96% 94% 96%<br />
2.5<br />
Performance Rating (Out of 3) on Express<br />
2.56<br />
2.5<br />
Pick Up Time Shipment<br />
Tracking<br />
Invoicing Specialized<br />
Storage and<br />
Warehousing<br />
Performance Rating (Out of 3) on Domestic<br />
2.35<br />
Pick‐up time Shipment<br />
Tracking and<br />
tracing<br />
2.59<br />
Customer<br />
Service<br />
2.61<br />
Invoicing<br />
Problems<br />
2.51<br />
Invoicing<br />
Problems<br />
2.53<br />
2.64<br />
Customer<br />
Care<br />
Performance Rating (Out of 3) on Freight<br />
2.56<br />
2.45<br />
Customer<br />
Service<br />
2.58<br />
Range of<br />
Services<br />
2.51<br />
2.52<br />
Range of<br />
Services<br />
2.55<br />
2.67<br />
Credit Terms Network of<br />
offices<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 40<br />
2.5<br />
Credit Terms Tracking Insurance On Time<br />
Delivery<br />
2.65 2.66<br />
Credit Terms Network of<br />
Offices in<br />
Every<br />
Country<br />
2.57<br />
Network of<br />
Offices in<br />
Every<br />
Country
<strong>Aramex</strong> has initiated a customer surveying process, which will ensure tracking customer perception online through<br />
the CRM system. These surveys will serve as a continuous customer feedback on <strong>Aramex</strong> and its service and be a<br />
platform of engaging customers. In 2007, a survey and focus group sessions will be conducted to cover more regions<br />
and a bigger segment of customers to calculate their overall satisfaction.<br />
� Service Level Measurement<br />
<strong>Aramex</strong> runs regular monitoring of service levels provided to customers through its quality of service standards audit<br />
system. <strong>Aramex</strong> currently has set standards that can be audited automatically by the system. In addition to regular<br />
timely audits, this system enables entities to self‐measure their performance. These audits provide tools for<br />
Customer Teams to proactively resolve discrepancies before escalation. We are working on further building the<br />
Customer Relationship Team capacity for frontline personnel across the network, and providing the empowerment<br />
tools for them to promote resolving customer issues on the spot.<br />
� Care for the customers’ documents and goods and Customer Privacy<br />
We take all steps possible to ensure that shipments are not damaged or lost. Through <strong>Aramex</strong> tracking system, all<br />
shipments can be traced. The customer Relationship Management Team has a clear and set polices to handle any<br />
customers complaints.<br />
Our policy is to ensure all sufficient conditions are set to protect customer confidentiality, and to never compromise<br />
or allow customers’ information to leak, directly or indirectly, knowingly or negligently, as stated in our Code of<br />
Conduct and internal policies. To our knowledge, there were no breaches of customer privacy or any substantiated<br />
complaints regarding breaches of customer privacy and losses of data. We are working to ensure that any personal<br />
data is always protected and handled in privacy according to best practices, and governing laws and regulation.<br />
� Responsible Marketing<br />
Our approach to marketing is to provide truthful and accurate information about our products and services, in a<br />
creative and straightforward manner. Also our sales approach through specialized ‘<strong>Aramex</strong> Teams’ allows us to<br />
market our services directly to customers rather than through a third party.<br />
There were no substantiated complaints regarding breaches of customer privacy or instances of non‐compliance<br />
with copyright laws in our marketing communications.<br />
� Product and Service Compliance with Laws<br />
There were no instances of significant monetary fines or non‐monetary sanctions for non‐compliance with laws and<br />
regulations, concerning the provision and use of products and services”<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 41
OUR PEOPLE<br />
HUMAN RESOURCES DEVELOPMENT<br />
Our Perspective<br />
Our business success will ultimately only be sustained by the quality of our people.<br />
Long-Term Strategic Goal<br />
Foster a sustainability-rooted culture of excellence in innovation,<br />
entrepreneurship, creativity, dynamism, results, and respect and care for<br />
our employees and others – to be our number one competitive asset.
Inside this Section:<br />
� Putting <strong>Sustainability</strong> at the heart of <strong>Aramex</strong> culture Page 46<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Conducted benchmarking against<br />
global best practice and established<br />
key priorities<br />
� Established a <strong>Sustainability</strong> Team<br />
and key working groups<br />
� Engaging Employees Page 47<br />
� Implement corporate‐wide training<br />
on <strong>Sustainability</strong><br />
� Establish global network of<br />
champions<br />
� Integrate into performance<br />
appraisals<br />
� Have sustainability recognized as<br />
overall management framework<br />
� <strong>Aramex</strong> ‘Culture of <strong>Sustainability</strong>’ is<br />
well‐known throughout the region<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� First ever ground operations<br />
conference<br />
� Annual employee conference<br />
� Conducted two courier surveys<br />
� Opportunities for Development Page 52<br />
� Use AccountAbility1000<br />
Stakeholder Engagement Standard<br />
to enhance quality of engagement<br />
� Accelerated rate of innovation<br />
� Be in a position to assure quality of<br />
engagement against AA1000<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Significant increase in training<br />
provided<br />
� Groundwork laid for <strong>Aramex</strong><br />
Corporate University<br />
� Global Workplace Conditions Page 55<br />
� Launch of <strong>Aramex</strong> Corporate<br />
university<br />
� 20 average hours training per<br />
employee<br />
� 13% women in middle management<br />
� 40 average hours training per<br />
employee, with 100% coverage<br />
� Women in management: 10%<br />
senior, 20% middle, 25% leaders<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Conducted survey including working<br />
hours of couriers<br />
� Employee Satisfaction Page 56<br />
� Conduct a review of our labor<br />
performance against the SA8000<br />
� All stations capable of successful<br />
certification against SA8000, with<br />
regular internal monitoring (This<br />
extends to major sub‐contractors)<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Significant increase in training<br />
provided<br />
� Groundwork laid for <strong>Aramex</strong><br />
training university<br />
� Continued to encourage healthy<br />
lifestyles among employees<br />
� Establish Employee Satisfaction<br />
Index<br />
� Enhance benefits and address any<br />
gaps in benefits across all stations<br />
� 80% average ‘Excellent’ score in<br />
satisfaction survey<br />
� Secure a Top 10 ranking in any<br />
external ‘Best Places to Work’<br />
surveys in the Middle East<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 43
<strong>Aramex</strong> is a fast‐growing, fast‐paced company in a high‐pressure industry. Every day, thousands of our customers<br />
rely on our people to meet many of their critical business needs.<br />
At the end of <strong>2006</strong> we had 5823 full‐time employees – an increase of 52% during the year and more than double in a<br />
two year period, both from natural growth and from acquisitions. In the same period, the number of packages and<br />
shipments our company moved also more than doubled, our range of services expanded significantly, and the needs<br />
of our customers became even more intense and varied amidst the dramatic economic development in the Middle<br />
East, Gulf, India and Asia and our continuing growth in other markets.<br />
Our ability to provide a consistently high quality of service to our customers, enhance our relations with key<br />
stakeholders, and continuously innovate to meet customer needs is the cornerstone of our business. We are<br />
strengthening the core elements of our culture in the midst of this massive growth of business, and our success is a<br />
testament to the quality and caliber of our people.<br />
The <strong>Aramex</strong> Culture<br />
At <strong>Aramex</strong>, we have long believed that our people – and our culture – are among the greatest strengths of the<br />
company.<br />
We aim to attract the best people, offer them opportunities to achieve and innovate, and properly reward<br />
performance. Key elements of our culture include a focus on innovation, quality, merit‐based opportunity, mutual<br />
respect, health and wellness, and commitment to society.<br />
Innovation is a vital ingredient of the <strong>Aramex</strong> culture and has been, and will continue to be at the heart of the<br />
company’s successes. We take great pride in our innovativeness – as a non‐asset company, in our product innovation,<br />
and in our delivery innovation.<br />
Entrepreneurship is encouraged and supported throughout the whole organization; our entrepreneurs have been<br />
promoted so they can develop their ideas into new products and divisions. Shop&Ship and <strong>Aramex</strong>@Home are just<br />
two children of the entrepreneurial efforts of our people.<br />
Merit‐based opportunity may be taken for granted in some parts of the world, but in many of the regions where we<br />
operate this is a practice in its early stages, and is more often preached than delivered. While we also struggle to<br />
overcome powerful traditions, we have built a culture recognized for its merit‐based approach.<br />
Mutual respect and openness: We believe we have created a culture that both transcends and respects cultural<br />
boundaries, and we think this is important given where our company is headquartered and our goal of outreach to<br />
the world. We seek to be responsible ‘global citizens’. We foster openness and encourage dialogue on challenging<br />
issues.<br />
Health and wellness: We encourage the physical and mental health of our people, believing that physical health is<br />
linked to mental health and productivity.<br />
Commitment to society: We recognize that our company, and every employee, is a part of society. We try to see<br />
ourselves in the context of society, and we believe it is important to be actively involved. We are well‐known for our<br />
community efforts, particularly when man‐made and natural disasters strike.<br />
We know that highly talented people seeking these cultural elements gravitate towards <strong>Aramex</strong>, and that this offers<br />
us tremendous advantage. Indeed, in many of our major markets (Middle East, North Africa, Gulf, India, Asia), young<br />
people make up the biggest percentage of the population demographic. This younger generation in particular is<br />
seeking – and the best are demanding – this type of workplace and philosophy; <strong>Aramex</strong> is recognized as offering<br />
such an opportunity. As a result, our workforce is young, and we attract many of the best talent out of universities.<br />
This also reflects our confidence in this well‐educated and talented generation.<br />
We recognize that we still have a lot to do to take advantage of everything our people have to offer. Despite our<br />
focus on talent and innovation, we have been told by our people that there is much more we can do to encourage<br />
and reward excellence in innovation and performance. We are continuously striving to improve our human<br />
resources management systems to respond to this opportunity.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 44
Human Resources Management System<br />
Given the importance of people to our success, and given the growth of the company, human resources<br />
management is a major challenge. Some of the specific challenges include 1) attracting and maintaining talent 2)<br />
development and succession planning, and 3) handling the numerous acquisitions, which have been both an<br />
opportunity but also a challenge to work towards an integrated – and improved – system after every acquisition.<br />
<strong>Aramex</strong> has an HR management system in place including extensive policies and procedures which are part of<br />
<strong>Aramex</strong>’s ISO9001:2000 certified quality management system. Key functions of the system include: 1) recruitment,<br />
2) training and development, and 3) career planning.<br />
Human resources services, as with most <strong>Aramex</strong> support functions, are coordinated out of the company’s central<br />
office in Amman, Jordan, which is known as the ‘General Services Office’ (GSO). The GSO had 180 staff at the end of<br />
<strong>2006</strong>, of which 5 were dedicated to HR. The company has 51 dedicated human resources and training staff<br />
worldwide. In general, all stations with more than 50 people have at least one dedicated HR employee. Recruiting<br />
responsibilities are shared between local stations and the GSO. Smaller stations are supported by one HR person<br />
who will also have the responsibility for another function in the station such as IT or quality.<br />
The human resources department intends to make a significant investment in an HR management tracking system in<br />
2007. Added features of the software will include performance management, succession planning, and training. The<br />
expected benefits include better talent management, development of staff and payroll controls. This will also<br />
dramatically improve the tracking and reliability of factors such as training and health and safety incidents, which in<br />
turn will allow us to better focus our efforts on improved performance in these areas.<br />
432<br />
13%<br />
Employment Type<br />
2004 2005 <strong>2006</strong><br />
2954<br />
87%<br />
Quality<br />
Operations Team<br />
Marketing Team<br />
Management<br />
Internal Audit<br />
Information Technology<br />
Human Resources and Training<br />
Finance Team<br />
Customer Teams<br />
Customer Relationship Management<br />
Calling Center<br />
Administration<br />
Accounting<br />
27<br />
3<br />
4<br />
48<br />
23<br />
15<br />
100<br />
76<br />
154<br />
585<br />
13%<br />
3934<br />
87%<br />
Emloyees Contractor<br />
Employees per Department <strong>2006</strong><br />
542<br />
766<br />
877<br />
Total number of employees: 5823<br />
778<br />
12%<br />
5823<br />
88%<br />
3188<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 45
Gulf<br />
India and Sri Lanka<br />
USA and Canada<br />
Asia<br />
Middle East<br />
North Africa<br />
Europe<br />
Australia<br />
129<br />
4%<br />
37<br />
51<br />
78<br />
36<br />
65<br />
100<br />
0<br />
0<br />
2<br />
298<br />
414<br />
608<br />
548<br />
376<br />
494<br />
344<br />
435<br />
609<br />
Employees per Region<br />
744<br />
Total: 2954 (2004) 3934 (2005) 5823 (<strong>2006</strong>)<br />
Employee profile: Age<br />
2004 2005 <strong>2006</strong><br />
1525<br />
52%<br />
1300<br />
44%<br />
Key Area 1: Putting <strong>Sustainability</strong> at the heart of the <strong>Aramex</strong> culture<br />
1011<br />
970<br />
156<br />
4%<br />
1927<br />
49%<br />
In many ways, we see <strong>Sustainability</strong> as the logical extension and evolution of the <strong>Aramex</strong> culture. At the same time,<br />
however, it is a huge step. It includes a fundamental shift in thinking, about many aspects of our business – for<br />
example our environmental impact.<br />
We believe that we can only successfully adopt sustainability management if it takes its place at the heart of our<br />
culture. Furthermore, it is our firm belief that if we do put sustainability at the heart of our culture, the scale of<br />
innovation and the benefits to all stakeholders will be dramatically and positively impacted. <strong>Sustainability</strong><br />
management is both a responsibility, and a tremendous business opportunity.<br />
Driven by the commitment and support of the CEO towards sustainability, we took the first steps in integrating<br />
sustainability into the corporate culture. We immediately recognized the importance of ensuring understanding and<br />
1315<br />
1851<br />
47%<br />
1731<br />
30 and younger 31 to 50 Over 50<br />
202<br />
3%<br />
2658<br />
46%<br />
2445<br />
2963<br />
51%<br />
2004<br />
2005<br />
<strong>2006</strong><br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 46
commitment of the senior management team. As with any business, but especially in the Middle East culture, signals<br />
and actions from senior management are critical means of communicating importance. In this regard, in <strong>2006</strong> we:<br />
� Undertook a sustainability benchmarking and assessment against international best practice, which included<br />
conversations and engagement with senior management<br />
� Presented the sustainability concept and benefits to shareholders and to our Board of Directors<br />
Based on senior management support, we took the following steps towards a structured implementation of<br />
sustainability, and integration into the corporate culture:<br />
� Established sustainability team<br />
� Established working groups, led by members of the sustainability team, for key issue areas<br />
� Engaged a wide number of managers and employees in data and content collection for the sustainability<br />
report, most notably the station operations managers for environmental and health and safety performance<br />
� Introduced sustainability to all operations managers at the annual operations conference, in the context of<br />
performance improvement<br />
In 2007, we aim to:<br />
� Bolster the strength and effectiveness of the sustainability team<br />
� Identify station/country and regional champions to work closely with sustainability team as a global network<br />
� Expand the working groups to involve a wider range of critically important staff<br />
� Undertake an Awareness Campaign for <strong>Sustainability</strong> (focusing on sustainability as core to culture,<br />
reinforcing performance goals, and highlighting international success and leadership stories)<br />
� Design and deliver targeted <strong>Sustainability</strong> Training. Including but not limited to Basic Training Plan (BTP)<br />
� Integrate sustainability performance into performance evaluations at all levels<br />
� Continue to establish and relentlessly pursue dramatic sustainability goals<br />
� Establish a Key Performance Indicator which assesses employee perceptions of the take‐up of corporate<br />
sustainability, including support provided for implementation, target setting and performance against<br />
targets, and overall integration into corporate culture. These questions will be incorporated into an annual<br />
employee survey and will take the form of a ‘<strong>Sustainability</strong> Culture Index’<br />
Key Area 2: Engaging Employees<br />
We aim to operate as a global team, executing fast‐paced service delivery for our customers. This necessitates<br />
excellent communication among all managers and employees, and an ability to address any challenges rapidly as<br />
they arise. To achieve this, we have attempted to maintain a relatively flat structure where people are empowered<br />
in their positions, along with a focus on open and honest communication. On the whole we believe there is a solid<br />
working relationship between management and employees, with good responsiveness to employee considerations,<br />
which in turn has resulted in no attempts, to our knowledge, to unionize. The goal: Encourage innovation,<br />
performance improvement, constructive working environment, quality, employee satisfaction and retain our best<br />
people.<br />
In this section, we try to present not just what our employees have identified as critical issues, but also our overall<br />
process for effective engagement of employees. We increasingly aim to use the AccountAbility1000 Stakeholder<br />
Engagement Standard as guidance for improving our engagement of employees. We look at engagement in terms of:<br />
� The ways in which we engage employees (How we engage)<br />
� How well we understand what we are told<br />
� How well we consider and respond<br />
� Ways of Engaging Employees<br />
<strong>Aramex</strong> offers opportunities for its employees to pass their opinions and raise their own issues and concerns<br />
regarding different work‐related topics using a variety of approaches, including surveys, team meetings, bi‐annual<br />
appraisals, surveys, and leadership meetings.<br />
Surveys: In the past two years we conducted 4 major surveys and 1 small survey that explored both priority<br />
employee issues while also assessing the quality of our employee engagement. A ‘Leadership Survey’ was conducted<br />
in August 2005, two surveys of our ground couriers in November 2005 and again in August <strong>2006</strong> to assess progress,<br />
and a ‘Training Survey’ conducted in April 2005. Some of the findings of these surveys are provided. As they<br />
demonstrate, we are doing reasonably well but there is a lot more progress that can be made. The plan is to re‐<br />
conduct each survey to assess improvements.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 47
The company also undertakes employee satisfaction surveys ‐ conducted every 6 months, results are sent to each<br />
station to come up with an action plan that they send back to the GSO. The results of the survey are also<br />
communicated to the employees in the station.<br />
Performance appraisals: <strong>Aramex</strong> policy is there to ensure that formal performance appraisal process is developed<br />
and implemented. Employees and leaders should engage in the Employee Performance Evaluation discussions on:<br />
� Annual or semi‐annual basis according to position<br />
� After the completion of the probationary period<br />
� Leaders Performance Evaluation discussions once every year<br />
Team meetings: Meetings are held on a weekly basis at team level for the majority of departments in the stations.<br />
Leadership retreats and conferences: This includes leadership retreats ‐ conducted for potential managers in the<br />
network, who engaged with the CEO and Senior Management directly for 2 full days. This also includes annual<br />
conferences ‐ attended by managers and leaders in the network. In <strong>2006</strong> <strong>Aramex</strong> held, for the first time, a ground<br />
operations conference to discuss operational matters and issues with operations managers in the network. Some<br />
stations also conduct an annual meeting to discuss the station's projects, growth, revenues, plans, etc.<br />
What is the most effective way in which the company interacts<br />
‐ or 'engages' – with you? Respondents were allowed to<br />
indicate multiple responses if they felt multiple techniques<br />
were effective. (n=23)<br />
7%<br />
7%<br />
5%<br />
12%<br />
12%<br />
20%<br />
37%<br />
Regular team and operational meetings<br />
Leaders conference<br />
Brain‐storming meetings<br />
Performance appraisals<br />
Surveys<br />
Focus Groups<br />
Other<br />
Quality of Engagement Survey<br />
22.0%<br />
70.0%<br />
9.0%<br />
Overall, how effective are the current methods of engagement for allowing<br />
you to share your ideas, inputs, needs, and expectations? (n=25)<br />
Excellent<br />
Good<br />
Poor<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 48
58%<br />
30%<br />
My leader conducts my semi/annual<br />
performance appraisal and provides me<br />
with timely feedback<br />
54%<br />
Leadership Survey<br />
52%<br />
36%<br />
12% 13%<br />
My leader holds regular and effective<br />
meetings to share information about<br />
results, plans and development<br />
(n=325) (n=326)<br />
35%<br />
My supervisor gives me the chances to say<br />
my opinion<br />
Quality of Engagement Survey<br />
17%<br />
79%<br />
4%<br />
Courier Survey<br />
46%<br />
44%<br />
11% 10%<br />
59%<br />
32%<br />
I get evaluated by my leader every year<br />
9%<br />
My leader encourages me to identify my training needs<br />
(n=598)<br />
Excellent<br />
Good<br />
Poor<br />
Do you feel your ideas, concerns, perspectives and inputs<br />
are fairly heard and understood? How well does the<br />
company understand your<br />
needs, expectations, perceptions, and inputs? (n=24)<br />
Training Survey<br />
58%<br />
Always<br />
Sometimes<br />
Never<br />
Leadership Survey<br />
35%<br />
Always<br />
Sometimes<br />
Never<br />
Good<br />
Fair<br />
Poor<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 49<br />
9%<br />
Creativity and innovation is highly<br />
appreciated and encouraged (n=668)<br />
Always<br />
Sometimes<br />
Never
� Understanding what we are told (Employee Ideas, Inputs, Concerns, and Perspectives)<br />
Seeking input, versus understanding what we have been told as seen from the perspective of the employee, is an<br />
important distinction. Again, our survey results suggest that our efforts are appreciated, but there is an expectation<br />
that we should be able to improve on our ability to understand priority employee needs.<br />
Our top five results across our surveys and other means of input included: 1) creativity and innovation, 2)<br />
empowerment of leaders for decision making, 3) leadership role, 4) investment in training, and 5) encouragement<br />
for training.<br />
Significant findings included the responses in our leadership survey to the statement: Creativity and innovation is<br />
highly appreciated and encouraged. We were disappointed with our scores, given the importance of innovation to<br />
the company, and are working to better understand this result and identify means of improvement.<br />
Our worst four results across our surveys (i.e., poor performance combined with high importance to employee) are<br />
listed in the table in the next section, along with a brief description of how we have tried to respond to these<br />
employee considerations.<br />
� How we respond (demonstrating responsiveness)<br />
We recognize that the most important element of engagement, in terms of performance gains, morale, and<br />
credibility, is to respond coherently to what employees tell us. After every employee satisfaction survey, the survey<br />
results are shared with the employees and the stations develop action plans which are assessed by the GSO.<br />
Beginning in 2007, we will also share these action plans with the employees.<br />
Some of the key issues raised in the surveys and other types of dialogue, and our responses, are summarized as<br />
follows:<br />
Key Issue for Employee Our response<br />
Too many points of contact for our most<br />
valued customer, also creating challenges<br />
with internal coordination<br />
Senior leaders requested that they get new<br />
training programs that can help them<br />
develop more to move forward to more<br />
senior levels to take on more responsibilities<br />
Issues facing employees with leadership and<br />
requests of leaders in network on their skills<br />
Many points on training whether internal or<br />
external; not enough courses being<br />
conducted<br />
Created the 'VIP' team concept and applied across<br />
all stations.<br />
Executive development program was initiated in<br />
<strong>2006</strong> for all chosen leaders who are potential<br />
managers.<br />
We started leadership training courses in 2004<br />
with an external trainer for leaders in stations,<br />
and we also did the leadership retreats with the<br />
CEO. We are continuing with the leadership<br />
external training which we conducted in <strong>2006</strong> and<br />
on going to cover all new leaders.<br />
We initiated the concept of corporate university<br />
to work closely on employees’ competency gaps,<br />
needs and development for internal and external<br />
courses.<br />
In principle, we aim to engage and respond to stakeholder considerations and inputs in all aspects of our decision<br />
making, from broad strategy to everyday decisions. This includes highest level considerations, such as the <strong>Aramex</strong><br />
Mission and Purpose which were derived from the leadership retreats.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 50
17%<br />
74%<br />
How well do you feel the company seeks to<br />
find a reasonable response, and actually<br />
responds to your ideas or concerns? (n=24)<br />
Leadership Survey<br />
51%<br />
36%<br />
13%<br />
My leader helps me set S.M.A.R.T objectives (n=326)<br />
Quality of Engagement Survey<br />
30%<br />
61%<br />
8% 9%<br />
Always<br />
Sometimes<br />
Never<br />
When the company does respond, how well<br />
does it follow up with employees and<br />
demonstrate achievement of the promised<br />
action? (n=23)<br />
Courier Survey<br />
60%<br />
51%<br />
43%<br />
31%<br />
26%<br />
40% 43%<br />
35%<br />
23%<br />
My requests and needs for<br />
external training are<br />
fulfilled (n=589)<br />
Quality of Engagement Survey<br />
17%<br />
71%<br />
13%<br />
How do you rate the overall quality of<br />
engagement between the company and<br />
employees? (n=24)<br />
Training Survey<br />
8%<br />
31%<br />
Excellent<br />
Good<br />
Poor<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 51<br />
9%<br />
Good<br />
Fair<br />
Poor<br />
My supervisor helps me in solving problems<br />
My requests and needs for When my external requests<br />
internal training are fulfilled are fulfilled, it is within an<br />
(n=599) accpetable period of time<br />
(n=575)<br />
Excellent<br />
Good<br />
Poor<br />
67%<br />
Leadership Survey<br />
28%<br />
5%<br />
Always<br />
Sometimes<br />
Never<br />
When I face a problem, I feel<br />
comfortable talking to my leader<br />
(n=328)<br />
Always<br />
Sometimes<br />
Never
� Overall quality of the engagement process<br />
We asked a small sample of our employees what they felt the benefits would be for the company of improved<br />
employee engagement.<br />
If there is an opportunity for improved engagement with employees, what is the most likely benefit to the<br />
company: (Ranked with 1 as highest) (n=23)<br />
15<br />
3<br />
Increase employee<br />
morale<br />
8<br />
4 4 4<br />
6<br />
3 5 6 8<br />
5 6 5<br />
1<br />
1<br />
Increased employee<br />
productivity<br />
Key Area 3: Opportunities for Development<br />
Investing in our people is important both because it is essential to the health and growth of our business, but also<br />
because we believe in supporting the development of our people. We have identified five key areas of focus with<br />
regard to human resources development:<br />
� Training<br />
� Focus on ‘leaders’ and leadership development<br />
� Opportunities for women<br />
� Continuous improvement in the performance review process<br />
� Equality in the workplace across our operations (to which we<br />
dedicate the section Global Workplace Conditions)<br />
� Training<br />
We divide our training into three broad categories:<br />
� Internal training for new hires prepared according to each<br />
position<br />
� Internal training for current employees as part of their training<br />
and development<br />
� External training, which is any training that is conducted by an<br />
external body (training center, external trainer, university, etc.).<br />
Increased ability to Increased innovation<br />
attract and retain the<br />
best talent<br />
These sessions can be either requested and managed by GSO or directly managed by the stations themselves<br />
Our training needs are determined by:<br />
� Our policies and procedures, such as those relating to Basic Introductory<br />
Training, and those relating to new policies as they emerge, such as the<br />
anticipated corporate wide training on sustainability<br />
� The needs as identified by our stations, and by individual employees through<br />
trainings needs assessments and performance appraisals<br />
In <strong>2006</strong>, training highlights included:<br />
� Intelligent leadership for leaders and potential leaders (3‐day program).<br />
� Sales for sales leaders and sales trainers. This was conducted for sales leaders in<br />
Dubai and in Amman, and the Amman training included an additional train the<br />
trainer 4‐day program for trainers from other stations.<br />
� Executive development management program for potential managers. This is a<br />
6‐day program in Amman. Two sessions were held in <strong>2006</strong>, with two more<br />
scheduled for 2007.<br />
� Country managers and VPs attending an executive development program in<br />
Wharton Business School of University of Pennsylvania<br />
� Customer service training for customer service managers, a number of<br />
customer account executives, and customer service employees (2 days), ground<br />
Rank 1<br />
Rank 2<br />
Rank 3<br />
Rank 4<br />
Training at <strong>Aramex</strong><br />
2005 <strong>2006</strong><br />
Number of internal<br />
training sessions<br />
1419 1775<br />
Number of internal<br />
training participants<br />
8060 7743<br />
Number of external<br />
training sessions<br />
113 153<br />
Number of external<br />
training participants<br />
547 1548<br />
Average training<br />
hours per employee<br />
8.50 8.45<br />
Basic Training Program<br />
for new recruits<br />
Hours<br />
per BTP<br />
Accounting 59.5<br />
CRM 61.5<br />
Express 61.5<br />
Freight 61.5<br />
HR 45<br />
IT 45<br />
Marketing 45<br />
MED 45<br />
SNS 45<br />
Logistics 61.5<br />
Quality 61.5<br />
Ground Couriers 38<br />
Contact Center 38<br />
couriers (2 days) and customer service trainers (attended both 2 day sessions). This was conducted in 2005.<br />
� Leadership for customer service managers.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 52
Training related to health and safety is captured in the Health and Safety section of this report. We also laid the<br />
groundwork for the <strong>Aramex</strong> Corporate University – this will be launched in 2007 and will become a focal point for<br />
improved quality, efficiency, and support for training within the company. All training for <strong>Aramex</strong> will be done<br />
through this university, and it will align the company's training efforts with other activities on a strategic level for<br />
developing and educating employees, customers, and suppliers. <strong>Aramex</strong> Corporate University will upgrade and<br />
design new curriculums and develop partnerships and alliances with universities.<br />
Quality and employee satisfaction relating to training<br />
In 2005 we undertook a survey to assess the quality and employee satisfaction with our training. This followed a<br />
period of efforts to improve training, based on prior input on its importance. We were pleased to find that almost<br />
74% of participants at that time felt that the <strong>Aramex</strong> training had improved over the previous year. There are still<br />
many categories where dramatic improvements can be made. In response, we have focused our efforts on: 1)<br />
Initiating a corporate university, 2) having dedicated training coordinators and managers in big stations, 3)<br />
developing and maintaining internal training material, and 4) creating qualified trainers in the stations and regions to<br />
conduct external training done by external training centers.<br />
In 2007 we aim not only to improve the quality of training, but also the tracking of training given. We would like to<br />
be able to provide a more informative picture on equality of training opportunities, equality of employees’<br />
development, and their successors.<br />
I feel that ARAMEX invests in training employees<br />
My leader encourages me to identify my training needs<br />
My requests and needs for external training are fulfilled<br />
My requests and needs for internal training are fulfilled<br />
The content of the internal training presentations used is<br />
informative and comprehensive<br />
The trainers in my station are knowledgeable and<br />
capable of delivering training<br />
The training I take helps me fulfill my job requirements<br />
and advance my career<br />
When my external requests are fulfilled, it is within an<br />
acceptable period of time<br />
73.7%<br />
22.7%<br />
3.6%<br />
In the past year, training<br />
programs at ARAMEX<br />
have<br />
Improved<br />
Not Changed<br />
Deteriorated<br />
4.2%<br />
4.1%<br />
3.9%<br />
4.7%<br />
8.9%<br />
8.3%<br />
Having a training sponsor provided<br />
me with guidelines to keep me on<br />
track during my training<br />
My practical training<br />
complimented what I have learnt<br />
in the theoretical training<br />
The content of the internal training<br />
presentations used is informative<br />
and comprehensive<br />
The support I received from the<br />
trainers during my practical<br />
training was appropriate<br />
The training I took helped me<br />
understand my job requirements<br />
30.5%<br />
27.0%<br />
25.2%<br />
23.4%<br />
Always Sometimes Never<br />
36.6%<br />
32.6%<br />
42.5%<br />
40.6%<br />
34.6%<br />
42.2%<br />
51.1%<br />
52.1%<br />
43.8%<br />
39.0%<br />
59.1%<br />
58.5%<br />
57.0%<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 53<br />
70.0%<br />
Years of service > 6 months<br />
Always Sometimes Never<br />
1.5%<br />
1.5%<br />
1.4%<br />
8.7%<br />
5.8%<br />
27.5%<br />
30.4%<br />
24.6%<br />
39.7%<br />
36.8%<br />
63.8%<br />
58.8%<br />
61.8%<br />
68.1%<br />
69.6%<br />
Years of Service
� Focus on ‘leaders’ and leadership development<br />
As a means of finding the best way for our staff to work together to meet customer needs and deliver efficient<br />
operations, <strong>Aramex</strong> has established the concept of ‘teams’. Each team is assigned a ‘Leader’. These leaders are the<br />
backbone of <strong>Aramex</strong> – working with the people, operations and customers on the frontline, making decisions<br />
and leading their teams, and handling team targets and achievements. These ‘Leader’ roles are being increasingly<br />
invested in by <strong>Aramex</strong>, in part because of their importance and also because of staff feedback as noted previously.<br />
These ‘leaders’ are the recognized leadership pipeline of the company. The ‘Leaders’ concept also offers a great<br />
opportunity to enhance equality in the workplace by, for example, increasing the number of women leaders as a<br />
means of increasing the number of women in senior and middle management over the medium‐term. There were<br />
1100 leaders in the company at the end of <strong>2006</strong>.<br />
� Equal opportunities:<br />
It is <strong>Aramex</strong> policy to not discriminate on the basis of<br />
nationality, color, ethnicity, religion, gender, marital status,<br />
personal circumstances, disability or health. We aim to<br />
undertake a major effort in 2007 and the following two<br />
years to ensure that we are doing everything we can to<br />
avoid any systemic discrimination that is arguably present in<br />
many places where we operate. We identify some of these<br />
labor challenges under ‘Global Workplace Conditions’.<br />
� Opportunities for Women<br />
The right of equal opportunity for women is an important issue. It is also a well‐recognized international issue<br />
related to The Middle East. We acknowledge that our performance numbers in this regard are weak, even though<br />
they are not significantly out of line with regional performance and indeed are probably better than average regional<br />
data.<br />
16<br />
0<br />
100%<br />
0%<br />
Level 1 VPs and<br />
Regional<br />
Managers<br />
Women in Management (end of <strong>2006</strong>)<br />
40<br />
89%<br />
5<br />
11%<br />
Level 2<br />
Country/Station<br />
Managers and<br />
Unit Managers<br />
130<br />
90%<br />
14<br />
10%<br />
Level 3 Other<br />
Managers *<br />
186<br />
91%<br />
Workforce Gender Mix<br />
Gender 2004 2005 <strong>2006</strong><br />
Count % Count % Count %<br />
Female 372 13% 522 13% 772 13%<br />
Male 2582 87% 3412 87% 5051 87%<br />
* ‘Other Managers’ include<br />
Corporate Managers, Branch<br />
Managers, Regional Managers –<br />
stations, Senior CRM, Sales and<br />
Marketing Manager, Product<br />
Managers, and managers in<br />
stations<br />
We could provide many cultural reasons for our performance – some of them valid, many of them increasingly<br />
challenged. We hold a tremendous respect for the cultures in which we operate, but we do not necessarily buy into<br />
some of the cultural validations nor do we view culture as static. Indeed, we have worked as a company to<br />
contribute to redefining commercial, economic and social bonds through the services offered by our company<br />
worldwide, and we believe we can have a very dramatic impact as we begin our drive towards sustainability.<br />
In 2007 we intend to better understand the underlying factors behind our performance numbers to determine what<br />
kind of creative solutions or straightforward initiatives might best have a positive impact on the number of women<br />
employed and in management. We believe there is a significant and achievable opportunity to break down barriers<br />
both in management but also in terms of employees across the network.<br />
� Continuous improvement in the performance review process<br />
Our team, through implementing the HR strategy, will work to provide the best opportunities for employees. A new<br />
process will be set to ensure communication with employees to gather their feedback on all important issues of<br />
concern. The new HR system will help analyze and understand the performance of our employees, and will be the<br />
basis of continuing improvement in the process of every aspect of their work.<br />
19<br />
9%<br />
Total Managers in<br />
the Network<br />
Male<br />
Female<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 54
Key Area 4: Global Workplace Conditions<br />
We are committed to equality in the workplace across our operations. While local laws and practices can cause<br />
complications in achieving this, it is not insurmountable and we also recognize immediate steps that can be taken.<br />
We intend to use the Social Accountability 8000 standard for labor conditions to guide our policies and procedures<br />
relating to labor conditions and human rights. Although we have not yet committed to certification, we want to<br />
ensure that all of our stations are capable of successful certification against SA8000, with regular internal monitoring,<br />
and extended to major subcontractors, no later than 2009.<br />
In 2007, we aim to conduct a full review of our labor performance against the SA8000. We will:<br />
� Identify top 5 issues and top 5 locations that may be at risk<br />
� Conduct evaluation (or survey) to assess actual performance<br />
� If there are violations, identify and implement suitable solutions that minimize harm to the affected worker<br />
and avoid future instances.<br />
� Determine most appropriate monitoring program, and implement<br />
� Establish appropriate policies and procedures.<br />
We already recognize that some systemic practices in the regions where we operate may be of concern, and these<br />
will fall within the scope of our 2007 efforts. For example:<br />
Handling of personal documents: in some countries it is a legal requirement to retain the passport of immigrant<br />
workers. We work within this system while doing our utmost to respect and protect the rights of our workers. We<br />
intend to work with relevant authorities to find a long‐term improvement to this practice. In the short‐term, we<br />
intend to begin reporting on any incidents or complaints from our staff relating to passport holding (including<br />
providing training on rights, and a safe and credible complaint line).<br />
Equal pay for equal merit: We know that in some countries, standard pay may differ for the local hired employee.<br />
But workers will accept and negotiate within certain pay scales. We intend to review our pay scales and structures to<br />
ensure we meet our commitments. We believe there is a tremendous opportunity to attract the best talent. In<br />
general, we believe that we offer competitive or above‐average pay in all of our areas of operation, and always meet<br />
or exceed local laws.<br />
Working hours of couriers: Many of our couriers work long shifts.<br />
When the shifts exceed standard hours, we pay overtime wages.<br />
Couriers typically agree as part of their employment agreement to<br />
overtime hours with extra pay on demand, and as such are required to<br />
accept overtime when requested or necessary. Many couriers also<br />
actually wish to work long hours – both to secure better pay and to<br />
secure overtime pay. Many of the priority issues for couriers – and<br />
their assessment of <strong>Aramex</strong>’s performance – are captured in the<br />
survey to the right.<br />
Courier Survey (Sept. <strong>2006</strong>)<br />
Average hours per shift<br />
(subjective)<br />
Number of stations surveyed = 17<br />
Number of employees who replied = 929<br />
Sub‐contractor compliance with <strong>Aramex</strong> policy: Traditionally we have<br />
had limited control over sub‐contractors. To the best of our knowledge (based on our ongoing relationship and<br />
direct questioning), all of our sub‐contractors comply with critical elements of the SA8000 (for example child labor<br />
and forced labor), but we intend to review this in detail with our sub‐contractors and develop appropriate<br />
mechanisms for ensuring SA8000 alignment and for sustainability‐screening of all sub‐contractors.<br />
With regard to contracts, we have two kinds: a) Employment Contracts for senior staff in the Network and regular<br />
staff according to country laws if required, and b) Employment offers which result in an employment record.<br />
With regard to child labor, <strong>Aramex</strong> policy is to not hire anyone without high school education, which reduces this risk.<br />
We do not employ child labor in any instance. With regard to freedom of association, the <strong>Aramex</strong> workforce is not<br />
unionized, and to our knowledge there have been no attempts to unionize. We recognize the right of employees to<br />
freedom of association. This is a lesser‐known concept in our main regions of operation and we will strive to make<br />
this option known to our employees. However, it is always our aim to maintain excellent relations with employees<br />
and we feel we have an excellent track record in this regard.<br />
161<br />
482<br />
8 to 9 hours 10 to 12<br />
hours<br />
328<br />
Over 12<br />
hours<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 55
There were no cases discrimination recorded in 2004‐<strong>2006</strong>. While we believe we do an excellent job in fostering a<br />
non‐discriminatory work environment, we recognize that the absence of any reported cases may be a function of the<br />
status of any mechanisms that allow for confidential reporting of cases of discrimination.<br />
Key Area 5: Employee Satisfaction<br />
We care for our employees and aim for a high level of satisfaction. We also believe that highly satisfied employees<br />
make for outstanding employees and outstanding corporate performance.<br />
Some of the most important considerations as identified by our people in past surveys and other means of<br />
engagement include: 1) Salary; 2) Benefits; 3) Opportunity for development and promotion; and 4) Job security and<br />
safety.<br />
� Salaries<br />
In our endeavors to recruit and retain excellent and motivated workforce, and taking into account the best practices<br />
that also match the culture of <strong>Aramex</strong>, the management of the company has put in place a flexible HR system and<br />
polices to govern the recruitment process that is linked directly with the corporate structure that is growing in<br />
different regions in the world. Based on that, and HR policies, a flexible structure and a general salary scale were set<br />
to assist the stations in each region or station to use this structure and create their own salary scale based on the<br />
market. Our HR principles, that are consistent with our core values state that we do not discriminate according to<br />
gender. The recruitment process, employment, and the salary are based on set criteria which apply to both women<br />
and men equally.<br />
<strong>Aramex</strong> has a strict policy to comply with labor laws and regulations that govern relationships between the company<br />
and the employees, the minimum wages, and overtime payments. A yearly salary increment between 5‐10%, based<br />
on the performance of the employee, is given and added to the basic salary. Also, a cash bonus is distributed among<br />
the different teams on a quarterly or six months basis based on the station financial performance in reaching set<br />
goals.<br />
� Benefits, including Health Insurance<br />
In terms of benefits, one of our key benefits is health insurance. At many of our stations, health insurance is already<br />
provided by the government. Where it is not, we aim to ensure that gap is filled. Of 29 stations reviewed 23 offered<br />
health insurance to all employees, 1 offered 50%, 1 offered coverage by choice, 1 offered coverage only to ex‐pats,<br />
and 1 offered coverage only to locals, while only 2 did not offer any coverage. Where coverage is offered, 25 of 29<br />
offered the same coverage to all employees. 6 of the 29 stations offered life insurance to employees. In terms of<br />
encouraging healthy and physically vibrant lifestyles, 11 of the 29 stations reported offering rebates for gym<br />
memberships, while 4 stations organized employee sports teams or rented sporting fields and facilities regularly for<br />
employee use.<br />
� Opportunity for development and promotion As per previous section<br />
� Job security and safety<br />
We are a fast‐growing company and typically our<br />
challenge is in finding great people in a short time.<br />
In <strong>2006</strong> we hired 2686 people (309 hired and<br />
resigned, 2377 remained) this is excluding around<br />
400 who were transferred from our acquisition of<br />
TwoWay Vanguard. Of our entire workforce, 576<br />
resigned (including 117 on probation) and 166 were<br />
released (including 47 on probation) by the<br />
company in <strong>2006</strong>. All of the reasons for release<br />
were related to performance – none were due to<br />
workforce reductions (which never happened in the<br />
history of the company). Our turnover rates are<br />
outlined in the chart to the right. Information on<br />
health and safety training can be found in the<br />
health and safety section.<br />
Total Exiting Employees 2004 2005 <strong>2006</strong><br />
During Resignation 109 116 117<br />
Probation<br />
period<br />
Termination<br />
160<br />
51<br />
185<br />
69<br />
164<br />
47<br />
All Exiting Resignation 641 483 768 573 742 576<br />
Termination 158 195 166<br />
Employee Turnover Rate<br />
21.70% 19.50%<br />
12.70%<br />
2004 2005 <strong>2006</strong><br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 56
How we measure satisfaction<br />
We currently measure satisfaction levels both directly and indirectly through:<br />
� Leadership surveys. Although not a direct measure, the general scoring provides us with a good indication of<br />
sentiment and satisfaction<br />
� Relevant questions among other surveys<br />
� Evaluation sessions<br />
� Turnover and absenteeism rates<br />
In 2007 we intend to develop such an indicator as part of our surveying process that provides an overall assessment<br />
of employee satisfaction. We have set a 3‐year target to achieve an 80% average of ‘excellent’ rating.<br />
The following chart shows the results of our Leadership Survey, conducted in August 2005.<br />
Creativity and innovation is highly appreciated and<br />
encouraged<br />
I feel my leader is empowered to resolve issues without<br />
having to refer back to his manager<br />
I have enough authority to make decisions and solve<br />
problems<br />
If I do a good job, my leader praises me and recognizes<br />
my achievements<br />
My leader conducts my annual/semi annual performance<br />
appraisal and provides me with timely feedback<br />
My leader encourages me to continuously learn and<br />
develop my skills<br />
My leader helps me set S.M.A.R.T. objectives<br />
My leader holds regular and effective meetings to share<br />
information about results, plans and developments<br />
My Leader sets a good example for us<br />
When I face a problem, I feel comfortable talking to my<br />
leader<br />
In November 2005 and again in August <strong>2006</strong>, we conducted a survey of our couriers’ opinions. While the comparison<br />
between the surveys showed a decline in “Poor” responses across all categories – shifting to the “Fair” category, it<br />
also showed a decline in “Good” responses across all categories. Part of the decline may be attributable to the fact<br />
that the first survey in November 2005 included responses from both couriers and ground operations staff and<br />
managers, while the August <strong>2006</strong> survey included only couriers. Regardless, the results were of concern. A<br />
conference was held in Amman for operations supervisors and managers and the results of the courier survey were<br />
discussed with them, and they were required to develop and submit an action plan to improve the situation at each<br />
of their stations. The discussion of the survey results involved the operations managers, GSO Human Resources, the<br />
Vice President Ground Services and CEO who was present to emphasize that senior management supports the<br />
importance of surveys and making action plans to address key considerations. A comparison of the courier survey<br />
results are represented on the next page.<br />
� Absenteeism<br />
Absenteeism rates can be viewed as an indicator of the<br />
general health of our workforce. To a lesser extent, it can<br />
also be viewed as an indicator of overall employee<br />
satisfaction.<br />
61 (9%)<br />
231 (35%)<br />
376 (56%)<br />
45 (7%)<br />
351 (53%)<br />
265 (40%)<br />
29 (4%)<br />
370 (55%)<br />
270 (40%)<br />
63 (9%)<br />
82 (13%)<br />
360 (54%)<br />
246 (37%)<br />
360 (56%)<br />
206 (32%)<br />
Always<br />
Never<br />
Sometimes<br />
42 (6%)<br />
196 (29%)<br />
432 (64%)<br />
79 (12%)<br />
328 (49%)<br />
259 (39%)<br />
69 (10%)<br />
320 (48%)<br />
274 (41%)<br />
37 (6%)<br />
202 (30%)<br />
426 (64%)<br />
34 (5%)<br />
188 (28%)<br />
445 (67%)<br />
0.50%<br />
994<br />
Absenteeism Rate<br />
0.40% 0.39%<br />
790 774<br />
2004 2005 <strong>2006</strong><br />
Absenteeism<br />
hours per<br />
200,000<br />
working hours<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 57
I am motivated to do my job<br />
I am satisfied with the benefits<br />
provided by <strong>Aramex</strong><br />
I feel I have job security<br />
I get evaluated by my leader every<br />
year<br />
My supervisor gives me the chance<br />
to say my opinion<br />
My supervisor helps me in solving<br />
problems<br />
My supervisor shows me<br />
appreciation and treats me with<br />
respect<br />
When I have my vacation approved<br />
ahead of time by my<br />
supervisor/leader, I take it as<br />
planned<br />
Average number of hours I work per<br />
day<br />
2005<br />
<strong>2006</strong><br />
2005<br />
<strong>2006</strong><br />
2005<br />
<strong>2006</strong><br />
<strong>2006</strong><br />
2005<br />
2005<br />
<strong>2006</strong><br />
2005<br />
<strong>2006</strong><br />
2005<br />
<strong>2006</strong><br />
2005<br />
<strong>2006</strong><br />
2005<br />
<strong>2006</strong><br />
Courier Survey<br />
4%<br />
6%<br />
14%<br />
11%<br />
10%<br />
15%<br />
14%<br />
11%<br />
13%<br />
9%<br />
11%<br />
14%<br />
14%<br />
11%<br />
17%<br />
20%<br />
24%<br />
26%<br />
21%<br />
22%<br />
16%<br />
20%<br />
16%<br />
15%<br />
16%<br />
Good Fair Poor<br />
20%<br />
26%<br />
27%<br />
31%<br />
31%<br />
34%<br />
37%<br />
35%<br />
50%<br />
48%<br />
46%<br />
44%<br />
44%<br />
40%<br />
35%<br />
49%<br />
54%<br />
54%<br />
57%<br />
49%<br />
60%<br />
8 to 9 Hours 10 to 12 Hours Over 12 Hours<br />
65%<br />
63%<br />
67%<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 58<br />
76%<br />
72%<br />
76%<br />
75%<br />
64%
HEALTH, SAFETY, AND SECURITY<br />
Our Perspective<br />
We are committed to the health and safety of all our employees,<br />
customers and all persons affected by our operations.<br />
Long-Term Strategic Goal<br />
Drive for Zero; zero at-fault fatalities, zero atfault<br />
injuries, and zero at-fault accidents.
Inside this Section:<br />
� Create a Safety Culture Page 61<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Established Health and Safety<br />
Working Group at GSO<br />
� Conducted first company‐<br />
wide survey to determine<br />
safety incident data and<br />
primary causes, prioritize<br />
safety risks, concerns, and<br />
identify opportunities for<br />
improvement<br />
� Establish H&S Index to<br />
measure degree to which<br />
safety is equated to<br />
corporate culture<br />
� Health and Safety Management Systems Page 62<br />
� Achieve 80% average of<br />
‘Excellent’ score on H&S<br />
Index<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Established Key Performance<br />
Indicators for Health and<br />
Safety<br />
� Identified key gaps in data<br />
collection<br />
� Design and implement H&S<br />
management system based<br />
on OHSAS18000<br />
� Begin tracking of H&S KPIs<br />
� Achieve Dramatic Performance Improvement Page 63<br />
� Be capable of certification<br />
to OHSAS18001<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Expanded our ‘Healthy Back’<br />
training<br />
� Identified key gaps in training<br />
� Significantly expand H&S<br />
training (both road safety<br />
and warehouse safety)<br />
� Undertake warehouse safety<br />
equipment audit<br />
� Establish a baseline at‐fault<br />
accident rate per shipment,<br />
and achieve 10% reduction<br />
� Establish baseline lost‐time<br />
injury frequency rate per<br />
200,000 working hours<br />
(covering all aspects of our<br />
operations), and achieve<br />
10% reduction<br />
� 0 fatalities<br />
� 50% reduction in accident<br />
rate<br />
� 50% reduction in lost‐time<br />
frequency rate<br />
� 0 fatalities<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 60
Note: Unless otherwise stated, the data from this Health and Safety section is based on 13 stations representing 55%<br />
of revenues in <strong>2006</strong>. These stations are: Abu Dhabi (United Arab Emirates), Amman (Jordan), Bahrain (Bahrain),<br />
Beirut(Lebanon), Cairo (Egypt), Dhaka (Bangladesh), Dubai (United Arab Emirates), Hong Kong (China), India, Jeddah<br />
(Saudi Arabia), Kuwait, Riyadh (Saudi Arabia), Tripoli (Libya).<br />
Key Area 1: Create a Safety Culture<br />
Every day, Thousands of our employees operate motor vehicles to deliver packages for our customers. Their safety is<br />
of utmost importance to us, as is the safety of other drivers and passengers with whom they share the roads. Our<br />
couriers understand the importance of meeting service deadlines. We also want to do more to reinforce that safety<br />
is as crucial as timeliness and cannot be compromised. To do this, we have to first of all set a very clear and<br />
aggressive long‐term strategic goal: To drive for zero at‐fault accidents, zero at‐fault fatalities, and zero at‐fault<br />
injuries.<br />
From an implementation perspective, we are going to:<br />
� Ensure appropriate and high quality training for our couriers<br />
� Improve management systems that allow for the tracking and reporting of accidents, injuries, and any<br />
fatalities and their causes, and carefully analyze this data to determine where we can make the most<br />
effective improvements<br />
� Increase our engagement with couriers and warehouse floor persons to find out from them how we can help<br />
make their jobs safer<br />
� Integrate safety into surveying and establish a safety perception index<br />
Our first step in identifying where to focus our efforts required getting a better understanding of the actual – as<br />
opposed to perceived – top safety issues, and the causes of those accidents. We have two major operating safety<br />
cases where accidents are most likely to occur: road accidents (vans, cars, and especially motorcycles), and in our<br />
warehouses.<br />
We surveyed 13 of our major stations representing 55% of revenues in <strong>2006</strong> as noted above. The first thing asked<br />
was ‘what are the top safety issues’:<br />
9 10 9<br />
Road accidents<br />
–ARAMEX at<br />
fault<br />
Road accidents<br />
–others at fault<br />
What are the top 3 saftey issues?<br />
# of responses (out of 12 stations)<br />
Back injury<br />
from lifting<br />
5 4<br />
Warehouse<br />
accident<br />
Employees<br />
driving to and<br />
from work<br />
According to our survey, road accidents caused by a non‐<strong>Aramex</strong> driver were the most common type of accident or<br />
safety incident. Of the four stations that ranked their responses, <strong>Aramex</strong> at fault scored first three times. Back<br />
injuries ranked 3 rd four times. Other at fault ranked in top 2 twice, as did warehouse accidents.<br />
We then proceeded to ask what the top causes of these accidents were. We broke the accidents into two categories<br />
– road accidents and warehouse accidents.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 61<br />
0<br />
Others
3<br />
Vehicle<br />
Malfunction<br />
The survey emphasized that on perhaps half of all road accidents, the fault is of the other driver. However, this has<br />
led us to commit to defensive driving training and other specialized training to give our couriers better opportunity<br />
to anticipate and potentially avoid such accidents. Among factors directly under <strong>Aramex</strong> control, courier fatigue was<br />
the number one rated issue. This is cause for concern and we will be taking immediate steps to determine<br />
appropriate action.<br />
1<br />
5<br />
Courier<br />
Negligence<br />
Weather Related Employee<br />
Negligence<br />
(loading/unloading)<br />
9<br />
What are the top three causes of accidents?<br />
For warehouse accidents, we were concerned to learn of the high response rate regarding inadequate safety<br />
instructions and training. As a result, for 2007 we have committed to implementing a warehouse safety training<br />
program, and to undertaking a safety and safety equipment audit at all our warehouses. In <strong>2006</strong> we opened 4 new<br />
warehouses and intend to open 7 warehouses in 2007. All warehouses will comply with <strong>Aramex</strong> safety procedures<br />
which are published as part of the logistics quality manuals, and these procedures will be significantly enhanced as<br />
we implement our health and safety management systems and as we learn the results of our safety equipment and<br />
safety audit. The enhanced procedures will be applied to all our warehouses effective immediately.<br />
Key Area 2: Health and Safety Management Systems<br />
1<br />
Lack of<br />
driving<br />
experience<br />
# of responses (out of 12 stations)<br />
6<br />
Although we already provide some training relating to safety and take other measures to mitigate accidents, we<br />
currently do not have a good system for tracking our performance with regard to accidents, safety incidents, and<br />
safety training. Our number one task for systematically improving our safety record is the development of an<br />
effective health and safety management system that is integrated with existing management systems and decision‐<br />
making. In 2007 we will design and implement an H&S system including key performance indicators (KPIs). The<br />
system will be designed using best practice and will be consistent with OHSAS18000. Our 2009 commitment is to<br />
ensure that all of our operations are in a position to be certified OHSAS18001 (a decision on certification to<br />
OHSAS18001 will be made at a later time – our initial focus is on performance improvements and incident<br />
reductions).<br />
We have already initiated this process for a more structured approach to health and safety management. We have<br />
established a Health and Safety Working Group at the GSO level. We intend to establish a contact person specifically<br />
for H&S at each major station, who will serve as a champion of awareness, training, implementation and tracking of<br />
performance at the stations, while also contributing to corporate H&S strategy and plans. For larger stations, these<br />
contact persons will coordinate an H&S committee at the station.<br />
11<br />
Driver fatigue Beyond<br />
Control<br />
(Other hits<br />
ARAMEX<br />
vehicle)<br />
Warehouse Accident<br />
7<br />
No safety<br />
instructions<br />
4<br />
9<br />
Road Related<br />
Problems<br />
No safety<br />
equipement (Fire<br />
extinguisher, fire<br />
fighting system)<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 62<br />
2<br />
Weather<br />
Related<br />
8<br />
0<br />
Others<br />
Lack of training Others<br />
1
Key Area 3: Achieve Dramatic Performance Improvements<br />
Based on: 1) indicators used by other companies in our sector, 2) guidance of the GRI, and 3) our internal capabilities,<br />
we intend to develop the following Key Performance Indicators for Health and Safety:<br />
� Fatalities (covering all aspects of our operations);<br />
� Automobile accident rate per shipment 1 (separated for at‐fault or not); and<br />
� Lost‐time accident (i.e., injury) frequency rate per 200,000 working hours (covering all aspects of our<br />
operations)<br />
We aim to be able to report on these indicators in our 2007 <strong>Sustainability</strong> <strong>Report</strong>. Due to current limitations to our<br />
data tracking, we are not able to present complete data. The implementation of the Fleet Management System and<br />
the new Human Resources tracking system will assist us tremendously in tracking this data, and these indicators are<br />
being included in their design.<br />
As part of our commitment to aggressively adopt sustainability management, and to reiterate the importance we<br />
place on the health and safety of our people, we are committing to aggressive targets for these indicators. Our long‐<br />
term strategic goal is to drive for zero at‐fault incidents for each of the above. On a one year and three year basis,<br />
our targets are outlined in the following table:<br />
Key Areas and Key Performance Indicator 2007 Target 2009 Target (3 year)<br />
Automobile accident rate per shipment<br />
Fatalities (<strong>Aramex</strong>, contractors, and third<br />
parties)<br />
Lost‐time accident (i.e., injury) frequency<br />
rate per 200,000 working hours (covering<br />
all aspects of our operations)<br />
10% reduction in at‐fault<br />
accident rate<br />
0 fatalities 0 fatalities<br />
10% reduction in lost‐time<br />
frequency rate<br />
50% reduction in accident<br />
rate<br />
50% reduction in lost‐time<br />
frequency rate<br />
There are at least four main elements to achieving these performance gains:<br />
� The commitment to the culture of safety<br />
� Management systems to capture and use data and human support structures in the forms of working groups,<br />
committees, and champions<br />
� Well‐targeted training<br />
� Implementation ‐ Follow up on training and translation of training into performance gains<br />
� Well‐Targeted Training<br />
The main type of safety training currently offered at <strong>Aramex</strong> is related to lifting heavy objects. Originally started in<br />
2004, ‘Healthy Back Training’ is now offered in at least 12 stations (based on the 13 survey respondents).<br />
In 2007, we aim to ensure that all stations offer the healthy back training to<br />
anyone who should receive it but has not yet received it.<br />
In 2007, we also aim to offer targeted driver safety training to 100% of our<br />
courier staff. We do understand that the vast majority of our couriers have<br />
excellent safety awareness and are careful drivers. This training is meant to<br />
both help protect the safety of our couriers, as well as other people who<br />
share the streets. We intend to follow up intensely with these locations to<br />
ensure corresponding performance gains.<br />
Healthy Back Training<br />
2004 2005 <strong>2006</strong><br />
Number of<br />
stations<br />
5 7 12<br />
Total<br />
participants<br />
Total<br />
117 484 624<br />
employee<br />
hours<br />
145 1309 1763<br />
We also intend in 2007 to develop and begin providing safety procedure and equipment training for warehouse staff.<br />
1 We will transition this over time to a ‘per 100,000 kilometers driven’ rate, in order to facilitate comparison against our sector<br />
peers. In the short term, our most reliable data is on a per shipment basis.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 63
� Implementation and Performance Gains<br />
Our goal is to ensure that our training efforts result in significant performance gains. The Health and Safety Working<br />
Group and its anticipated network of Health and Safety station representatives will be responsible for ensuring<br />
aggressive follow up. The following paragraphs outline our starting point in terms of data availability and<br />
performance.<br />
� Reducing road accidents<br />
As a result of no formal tracking system currently in place, we do<br />
not have reliable data on the aggregate number of road<br />
accidents involving <strong>Aramex</strong>. As part of an approach that will help<br />
to address this, in 2007 we are continuing the rollout of a ‘Fleet<br />
Management System’ (FMS) which tracks accidents for every<br />
vehicle in our fleet. Our quality department is also involved in<br />
the implementation of FMS to help provide a framework for<br />
what constitutes key terms such as an ‘accident’, and to help ensure the system is being used.<br />
The available data on road accidents is represented in the above table.<br />
Note that:<br />
� 2004 Data represents 7 of 13 surveyed stations (not reporting were Abu Dhabi, Dhaka, Hong Kong, India,<br />
Kuwait, Tripoli)<br />
� 2005 data represents 9 of 13 surveyed stations (not reporting were Abu Dhabi, Dhaka, Hong Kong, Tripoli,<br />
and India’s number represent only accidents causing injury)<br />
� <strong>2006</strong> data represents 10 of 13 surveyed stations (not reporting were Dhaka, Hong Kong, Tripoli, and India’s<br />
number represent only accidents causing injury)<br />
� Reducing Fatalities<br />
Tragically, one of our employees lost their life this year in a road accident. Our<br />
stated goal is zero fatalities and as such, any fatality is a terrible tragedy. We<br />
are saddened by this development and we extend our sympathy to the family.<br />
Road accidents<br />
involving <strong>Aramex</strong><br />
vehicles<br />
2004 2005 <strong>2006</strong><br />
With injuries 3 4 14<br />
Without injuries 273 312 385<br />
Total 276 316 399<br />
Total # of<br />
fatalities<br />
(deaths) 2<br />
� Injuries<br />
We do not have adequate data collection techniques to present injury information for past years. We are ensuring<br />
that our new management systems which are being implemented in 2007 will be able to accurately capture this data.<br />
� Compliance<br />
To the best of our knowledge, there were no significant fines paid relating to H&S in 2004, 2005, <strong>2006</strong>.<br />
2 Breakdown of the deaths are as follows: 2004: 1 Beirut, 2 Cairo, 1 Dhaka, 1 Riyadh; 2005: 1 Dhaka; <strong>2006</strong>: 1 Dhaka<br />
2004 2005 <strong>2006</strong><br />
Road 5 1 1<br />
Warehouse 0 0 0<br />
Total 5 1 1<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 64
Security<br />
It is <strong>Aramex</strong>'s policy to take all reasonable measures to protect its assets, customers’ shipped goods and other<br />
property from loss, destruction or damage, and to protect all its buildings from unauthorized intrusion. <strong>Aramex</strong> has<br />
published security procedures that cover all aspects of the business cycle, from building security to information and<br />
data security. At the same time each station has an appointed security officer that takes care of all security issues<br />
that are related to his or her station.<br />
<strong>Aramex</strong> stations comply with their local governmental security rules and regulations at each site, such as the<br />
Transportation Security Administration in the USA, the department of Transport in UK, the IATA organization and<br />
many other important governmental bodies.<br />
<strong>Aramex</strong> also has two TAPA certified sites in Jordan, and is working on preparing four more sites in the Middle East<br />
and Gulf to be TAPA certified. TAPA (Transported Asset Protection Association) is an association of security<br />
professionals and related business partners from technology companies who have come together for the purpose of<br />
addressing the emerging security threats that are common to the high tech industry.<br />
Working with international government agencies, <strong>Aramex</strong> as a transportation solutions provider understands the<br />
regulations and laws that govern international trade. As a C‐TPAT certified provider, our security measures meet the<br />
latest requirements established by U.S. Customs and Border Protection. Our certification in the C‐TPAT program<br />
highlights our commitment to a secure and efficient supply chain. <strong>Aramex</strong> also complies with the US bio‐terrorism<br />
Act, that includes provisions designed to protect the United States against bio‐terrorist threats to its food supply<br />
including food from foreign sources.<br />
For <strong>2006</strong>, in our entire global operations we are aware of only one minor and isolated incident of non‐compliance<br />
with a regulation resulting in a limited warning and an insignificant fine, for which we took quick action and<br />
immediately resolved to the satisfaction of authorities. In addition to our efforts with the above‐mentioned<br />
associations and standards, we work closely with the relevant authorities in individual countries to ensure strong<br />
security measures in all of our regions of operation. We are continuously improving our efforts to adopt best<br />
practice approaches to safety and security of our services. Our excellent track record is a testament to our efforts in<br />
this regard.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 65
OUR CITIES<br />
URBAN IMPACTS<br />
Our Perspective<br />
We are committed to playing our part in helping to reduce traffic congestion<br />
and pollution to ensure high mobility, vibrant, safe, healthy and clean cities.<br />
Long-Term Strategic Goal<br />
To create innovative services that will help shape and accelerate ‘sustainable cities’.
Inside this Section:<br />
� Reduce Noise Impact Page 68<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Made several changes to<br />
operations procedures and<br />
locations in recent years to<br />
address community concerns<br />
� Ensure Safe and Courteous Driving Page 68<br />
� Begin systematic tracking<br />
of noise complaints and<br />
develop policy<br />
� Commitment to move Abu<br />
Dhabi outgoing operations<br />
center in response to<br />
community input<br />
� 50% reduction in related<br />
community complaints<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Responded with<br />
consideration to any<br />
community concerns<br />
� Implement systematic<br />
tracking of complaints<br />
against couriers and<br />
solutions undertaken;<br />
establish baseline<br />
performance<br />
� Reduce road congestion and driving time Page 69<br />
� 50% reduction in related<br />
community complaints<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Began implementation of<br />
Vehicle Tracking System as<br />
the foundation for Route<br />
Optimization technology<br />
� Implementation of innovative<br />
‘canal’ boat delivery in Dubai<br />
to reduce congestion<br />
� Reduce Emissions Page 69<br />
� Implementation of Route<br />
Optimization technology in<br />
pilot stations<br />
� 5% reduction in driving<br />
delivery time in pilot<br />
stations using route<br />
optimization technology<br />
� 10% reduction in driving<br />
delivery time<br />
� Participation in multiple<br />
‘sustainable city’ dialogues,<br />
and development of at least<br />
2 corresponding innovative<br />
services<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Began implementation of<br />
Vehicle Tracking System as<br />
the foundation for Route<br />
Optimization technology<br />
� Establish baseline<br />
measures for NOx and<br />
other road fleet emissions<br />
per shipment, and achieve<br />
15% reduction, as per<br />
environment section<br />
� 50% reduction in NOx and<br />
other road fleet emissions<br />
per package, as per<br />
environment section<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 67
Urban traffic congestion and road safety are becoming major irritants in many key markets where <strong>Aramex</strong> operates,<br />
and as such are also becoming very public issues. From a business perspective, these issues have both direct financial<br />
costs and reputational risks, given the nature of our business and our heavy reliance on motor vehicles to conduct<br />
our urban operations. Financial costs include fuel consumption and safety related costs, and reputation costs as well<br />
as the greater risk of missed delivery deadlines, or <strong>Aramex</strong> may be viewed as contributing to congestion or noise or<br />
unsafe roads.<br />
We are committed to doing our part in helping reduce traffic congestion, road safety, and air pollution to ensure<br />
mobile, safe, clean, vibrant and healthy cities. Our long‐term strategic goal is to create innovative services that will<br />
help shape and accelerate ‘sustainable cities’. Based on dialogue and feedback from stakeholders, and our own<br />
assessments including international benchmarking, we have identified several areas where we do have or can have<br />
an impact on quality of city life:<br />
1) Noise reduction<br />
2) Traffic congestion reduction<br />
3) Safe and courteous driving<br />
4) Emissions reduction<br />
5) New types of services<br />
Our immediate priorities for performance improvement include:<br />
� Noise reduction<br />
One of our most localized and pressing urban issues relates to noise abatement from our motor vehicles. The issue<br />
typically arises where our local distribution centers are found in urban residential settings. In many of these cases,<br />
these areas were not as heavily populated and even isolated when we established our operations. The fast‐growing<br />
economies of the Middle East and Asia – and the resulting rapid growth of cities ‐ have often resulted in our<br />
operations being engulfed by urban growth. Furthermore, some of our noise challenges arise from trying to address<br />
other sustainability issues. For example, by implementing early morning deliveries, we can reduce emissions by<br />
avoiding rush hour traffic congestion. However, this results in unwanted early morning noise pollution at our<br />
operations centers.<br />
Traditionally we have managed noise complaints on a case‐by‐case basis. On several occasions, we have either<br />
adjusted our operations or moved our operations entirely. For example in Damascus, we changed the indoor and<br />
outdoor locations of our operations to reduce noise impact in response to complaints. In Jeddah, we moved our<br />
offices from a heavily inhabited area to an isolated area, again in response to complaints. In Riyadh, we moved our<br />
offices in 2001 within three months of complaints from neighbors and the municipality, and then in 2002 we<br />
received notice from the new municipality asking us to again move our operations, which we did. These noise<br />
problems are now resolved.<br />
Not all complaints can be resolved easily, particularly when the solution ultimately involves the moving of locations.<br />
We need to balance the interests of our clients and shareholders and the demands of competitiveness with our<br />
concern for community well‐being. However, we recognize that this is a recurring issue that can be more proactively<br />
and effectively managed. We do not currently track the number of complaints. And although we have long been<br />
aware that noise management is a recurring challenge, it has been the process of undergoing our first sustainability<br />
review that has led us to recognize this as an issue that can be more effectively managed. In 2007 we will establish a<br />
policy on noise management and will begin systematically tracking complaints relating to noise. We will provide<br />
greater support to our operations in terms of effective engagement and acknowledgment of concerns, even if we<br />
cannot immediately address these concerns to full satisfaction.<br />
� Safe and courteous driving<br />
The residential locations of some of our operations also sometimes result in concerns relating to unsafe driving or<br />
generally unsafe residential road conditions. For instance, in Abu Dhabi our outbound operations office is in a<br />
densely populated residential area, and we are receiving complaints about our motorcycles driving over the<br />
pavement which poses a risk to pedestrians and property. We issue strict warnings to our couriers and we track<br />
concerns relating to couriers and take the necessary action to ensure maximum road safety. Regardless, given the<br />
level of our vehicle traffic including all sizes of vehicles, some of our residential operations are not tenable over the<br />
long term. In the case of this Abu Dhabi location, we intend to move our offices in the coming 4 to 5 months, during<br />
2007.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 68
From time to time we receive complaints about the quality of our couriers’ driving on highways and roads. All of our<br />
larger vehicles (vans, trucks) have a sticker ‘How’s my driving?’ along with a number to call with complaints. We take<br />
these complaints seriously and listen to the perspective of both the concerned citizen and our courier. We take<br />
action as appropriate. Our local stations monitor complaints against couriers on their files, but we do not have a<br />
system for tracking overall complaints.<br />
A third issue regarding safe and courteous driving relates to parking. We sometimes receive complaints about the<br />
locations where our couriers temporarily park to drop off packages. We try to minimize disruptions that lead to such<br />
complaints, and abide by <strong>Aramex</strong> Corporate Procedure for securing our vehicles which states that upon loading and<br />
unloading, the ground courier should park the vehicle in a secured area as close as possible to the customer’s<br />
premises. Separately, a shortage of available parking around some of our offices leads to significant overflow parking<br />
in the surrounding streets. This sometimes leads to complaints by local businesses and residents. We try to respond<br />
to and respect their concerns.<br />
� Reducing Traffic Congestion and Driver Delivery Time<br />
We have a 3‐year target to reduce driver delivery time by 10%. Naturally, it is in our best interest to reduce and<br />
avoid congestion. This contributes directly to business performance (by reducing costs and improving on‐time<br />
delivery) but also aims to address congestion. We have already taken many steps to reduce this.<br />
A first strategy includes trying to undertake our deliveries before and after rush hour.<br />
As a second strategy, and in an important step towards significant reduction of driver delivery time and related<br />
congestion, we began implementation of our Vehicle Tracking System in <strong>2006</strong> (see page 86). This system is equipped<br />
with Route Optimization technology advising the driver which way is best and when to take it. We intend to<br />
implement the route optimization element of this system in 2007 in key locations, with full implementation by 2009.<br />
As such, we hope to see a significant amount of our 3‐year 10% reduction target achieved in 2007 and early 2008.<br />
We intend to aggressively implement and continuously enhance this system.<br />
As a third strategy for reducing traffic congestion, we use alternative types of vehicles and transport modes. We<br />
make extensive use of motorcycles in many markets such as Abu Dhabi, Dubai, Cairo, and several cities in India and<br />
Sri Lanka. An innovative example of creativity in service delivery, is in Dubai where congestion is notorious and we<br />
have negotiated to use the waterways for our deliveries, thus reducing our road traffic<br />
� Emissions reductions<br />
Covered in more detail in the Environment section of this report (see page 88), but worth repeating here, are our<br />
ambitions regarding emissions reductions. CO2, NOx and other emissions from our motor vehicles contribute to smog<br />
in cities. In the environment section we discuss our tactics for reducing CO2 and other emissions including a<br />
transition of fuel from leaded to unleaded, a transition to low‐emission vehicles and hybrid vehicles, and retrofitting<br />
of vehicles. We expect these will reduce our NOx emissions by 50% by end‐2009.<br />
� Service innovation<br />
In addition to the above efficiency improvements, we believe that fundamentally, we need to continuously explore<br />
and rethink our business in line with principles of sustainability. As noted, our long‐term strategy is to develop<br />
successful new services designed to reduce the impact of congestion and help usher an era of ‘sustainable cities’.<br />
This approach will require dialogue and partnerships with various stakeholders to explore new models of<br />
economically vibrant but environmentally sustainable and socially attractive city cores and surroundings.<br />
We are already taking preliminary steps in this direction in particularly congested markets. As noted, we worked with<br />
authorities in Dubai to consider creative new options resulting in the use of waterways for our deliveries. In Cairo,<br />
we have been participating in a dialogue with authorities as well as automotive associations and high impact<br />
companies and are hoping to see a collective initiative launched. In Amman, in 2005 we acquired Jordan Distribution<br />
Agency (now called <strong>Aramex</strong> Media). We intend to use its network of 7 bookstore outlets located in key strategic<br />
areas of Amman to significantly expand our drop off hours and flexibility. This can dramatically reduce distance and<br />
frequency traveled by our vehicles (for example, by picking up 20 packages at a time instead of a trip per client<br />
request), as well as distance and frequency of travel by clients. We will pilot test this in 2007. Variations on this<br />
theme can be applied in other markets.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 69
In 2007, we aim to more proactively and systematically engage in at least one ‘sustainable city’ multi‐stakeholder<br />
initiative, with the goal of identifying one or more service innovations that will position us as a leading total<br />
transportation solutions provider in the context of more sustainable cities. As articulated in the environment section,<br />
we will also be exploring the opportunities relating to offering low‐carbon and zero‐carbon services.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 70
OUR COMMUNITIES<br />
INVESTMENT IN SOCIETY<br />
Our Perspective<br />
We believe that all people should have equal opportunity and equal rights.<br />
Long-Term Strategic Goal<br />
Create opportunities and initiate meaningful change in underprivileged<br />
societies, touching over one million underprivileged persons.
Inside this Section:<br />
� Amount of contributions and geographical distribution Page 73<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Responded with consideration<br />
to any community concerns<br />
� 1% of pre‐tax profits donated<br />
annually<br />
� Significant increase in the<br />
geographic distribution of<br />
funds<br />
� 1% of pre‐tax profits donated<br />
annually<br />
� Alignment within 10% of<br />
revenue distribution, with the<br />
exception of greater weighting<br />
for regions with greatest<br />
economic need<br />
� Reducing Marginalization through Inclusion and Empowerment, includes sub‐themes of Youth<br />
Empowerment; Sustainable Community Investment; and Emergency Relief Page 73<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Invested 0.8% of pre‐tax profit<br />
into community initiatives<br />
� Achieved significant<br />
sustainable community results<br />
at our Jabal Al‐Natheef pilot<br />
initiative<br />
� Strongly supported the Arab<br />
Foundation for Sustainable<br />
Development<br />
� Organized “Aid Lebanon With<br />
Us” campaign and delivered<br />
over 500 tons of food and<br />
medicines generously<br />
donated by people from<br />
countries across the Middle<br />
East and Gulf<br />
� Positively impact 100,000<br />
marginalized people and<br />
families<br />
� Youth Empowerment: 180<br />
young people significantly<br />
impacted (scholarship,<br />
internship, employment,<br />
other)<br />
� Sustainable Community:<br />
Continued investment of time<br />
and in‐kind to Jabal Al‐<br />
Natheef pilot initiative<br />
� Emergency Relief: Respond to<br />
major emergencies with<br />
campaigns to leverage<br />
support and contributions,<br />
coordinated shipping, and on‐<br />
the‐ground logistics support<br />
� Positively impact 300,000<br />
marginalized people and<br />
families<br />
� Youth Empowerment:<br />
Increase impact by 10% per<br />
year (300 youth in 2009 and 3‐<br />
year total of 500)<br />
� Sustainable Community: Apply<br />
lessons learned with Jabal Al‐<br />
Natheef pilot initiative to a<br />
wider range of initiatives<br />
across the countries where<br />
<strong>Aramex</strong> operates<br />
� Emergency Relief: Expand use<br />
of our core competencies to<br />
support chronic emergencies<br />
and marginalized populations<br />
� Implement a model for categorizing, managing and measuring impact and performance of our<br />
investment in society Page 79<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Developed a conceptual<br />
model for our ‘Investment in<br />
Society’<br />
� Strengthen our model using<br />
the London Benchmarking<br />
Group model<br />
� Improved ability to measure<br />
our impact: Determine best<br />
means to measure impact at<br />
Jabal Al‐Natheef, and begin<br />
tracking<br />
� Our ‘Investment in Society’<br />
plan, actions, and measures<br />
can be audited against the<br />
LBG<br />
� Establish measurement of<br />
our “Investment in Society”<br />
impact, and measured year‐<br />
over‐year performance<br />
improvements<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 72
<strong>Aramex</strong> has a long history of giving back to our communities through our involvement in philanthropic and sporting<br />
activities. This stems from our understanding of our connection to the community, our respect for the communities<br />
where we operate, and our awareness of the importance of the welfare of these communities.<br />
This past year has witnessed a leap forward in the company’s efforts, including a more institutionalized approach to<br />
several aspects of our community investment. At the end of 2005 we spearheaded the creation of the Arab<br />
Foundation for Sustainable Development "Ruwwad", a non‐profit company dedicated to improving the quality of life<br />
of communities and individuals in the Arab world. "Ruwwad" serves as a vehicle for part of <strong>Aramex</strong>’s investment in<br />
society. <strong>2006</strong> was its first full year of operation and its activities; accomplishments and challenges are summarized<br />
within the following pages.<br />
We have also recently begun to develop an <strong>Aramex</strong> ‘Investment in Society’ model that allows us to categorize and<br />
manage our community involvement and impact. The model builds up on the basis of increasing use of our core<br />
resources as a company, and an increasing level of active involvement in initiatives and scale of impact. This model is<br />
helping to show us the creative steps we can take to dramatically increase our positive impact on marginalized and<br />
disempowered people.<br />
<strong>Aramex</strong> ‘Investment in Society’ model<br />
Increasing scale, reach, and impact<br />
Leveraging our Impact with Others<br />
(SD Fund, SEGs, GDA, etc.)<br />
Providing affordable services to meet<br />
the needs of the world’s marginalized<br />
Using Core Business<br />
Competencies (Disasters<br />
and Chronic Emergency)<br />
Community<br />
Investment, Service<br />
and Volunteering<br />
Charitable<br />
Donations<br />
Currently our corporate philanthropy efforts are coordinated via our <strong>Sustainability</strong> Manager, a member of <strong>Aramex</strong><br />
senior management. This officer, in coordination with <strong>Aramex</strong> senior representative on Ruwwad's Board of Directors,<br />
works closely to assist with the implementation of social development initiatives that are launched by Ruwwad, and<br />
assigns internal Task Forces to major initiatives such as emergency aid relief for disasters.<br />
Reducing Marginalization through Inclusion and Empowerment<br />
While our efforts are directed with the entire community in mind, we have concentrated on under‐privileged areas<br />
where unmet needs exist. We are concerned about marginalization in society – marginalization between the<br />
economically developed and developing nations, which ultimately directly impacts our business for better or worse.<br />
But more potent and perhaps microcosms of these marginalization arise in the divisions between the wealthy and<br />
the marginalized across all of the countries and cities where we operate. We further divide them into three key areas,<br />
in ascending order in our model:<br />
� Youth development, with a focus on youth empowerment<br />
� Sustainable community development, with a focus on marginalized communities<br />
� Emergency and disaster relief, responding rapidly to devastating natural and human disasters<br />
In <strong>2006</strong> we donated $220,362 through our various approaches to investment in community. This was a decline of<br />
41% from $374,898 in 2005, also lower than our total contributions in 2004 of $357,274. Our performance in <strong>2006</strong><br />
amounts to 0.81% of pre‐tax profits. Our goal is to maintain at least 1% pre‐tax profits and we commit to meeting<br />
that objective for 2007. We also aim to maximize the leveraging that can be achieved through our efforts and via our<br />
core competencies.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 73
The geographic breakdown by region of our community investments is captured in the corresponding pie chart on<br />
page 33. We recognize that the regional distribution is heavily favored towards Jordan, our initial market and home<br />
of our General Services Office. This will remain skewed to some extent while we pilot our sustainable community<br />
development project at Jabal Al‐Natheef in Amman, Jordan. However, it is our<br />
goal to increasingly disperse our investments in society according to our<br />
revenue percentages, and also according to our theme of reducing<br />
marginalization and finding means of empowering the most disenfranchised in<br />
our society. In <strong>2006</strong> we invested $93,552 in Jabal Al‐Natheef.<br />
The dollar amounts used in this section correspond to the community<br />
investments as identified in our financial statements. This underestimates our<br />
contributions to society because not all stations identify all contributions with<br />
a separate line item. It also does not factor in our significant in‐kind<br />
contributions. However we present these numbers as comparable and conservative figures for the past three years.<br />
As part of our commitments for 2007, we intend to adopt more comprehensive systems for tracking our<br />
contributions, as well as adopting the London Benchmarking Group guidelines for reporting on charitable donations<br />
to improve the overall comparability of our community investments against international best practice, peers, and<br />
competitors.<br />
Similarly, while we know that our employees volunteer extensively in the community – and in fact <strong>Aramex</strong> allows<br />
employees paid time for volunteering for certain initiatives – we do not have a good method for tracking these in‐<br />
kind donations of employee time. We intend to incorporate a tracking system for volunteering within 12‐18 months.<br />
Youth Empowerment<br />
$ invested in community as % of<br />
pre‐tax profit<br />
% of<br />
pre‐tax<br />
profits<br />
2004 2005 <strong>2006</strong><br />
2.58% 1.76% 0.81%<br />
In many of the countries where we operate, young people (14 to 22 years old) are a majority. It is estimated that the<br />
economies of the Middle East will need to create more job opportunity over the coming ten years in order to<br />
maintain current employment levels.<br />
The task of finding rewarding employment will be particularly challenging for young people in marginalized<br />
communities with fewer educational opportunities, fewer resources for education, fewer opportunities to gain job<br />
experience, and tremendous short‐term financial pressures, regardless of being equally talented. Our goal is to find<br />
ways to empower these talented youth. We have narrowed the challenges down to four challenges where we aim to<br />
have a constructive impact.<br />
� Challenge 1: Providing access to sports and recreation programs, for good physical and mental well‐<br />
being<br />
<strong>Aramex</strong> has been a long‐time supporter of sports in the community, including sponsorship of a professional<br />
basketball team and major sport tournaments. As part of an initiative to turn Amman into a child friendly city,<br />
<strong>Aramex</strong> supported an ongoing project which involves creating new sports playgrounds or developing existing ones in<br />
underprivileged urban communities so that young people have a place to play and learn different sports and<br />
activities. Inline of this strategy, <strong>Aramex</strong> worldwide supported different sports activities such as African Tennis Cup in<br />
Sudan, Basketball Championship in UAE, and Temple Street Children Hospital road trip in USA.<br />
� Challenge 2: Reducing inequality of educational opportunities for young people<br />
Under the umbrella of the Arab Foundation for Sustainable Development "Ruwwad", <strong>Aramex</strong> contributed to the<br />
establishment of the Mousab Khorma Youth Empowerment Fund. The fund aims to targets young people in<br />
marginalized areas by providing scholarships and loans to enable them complete education, and supplement their<br />
education with internship and mentoring programs.<br />
Of great benefit to both young people and <strong>Aramex</strong> is our internship program, where we offer internships for +100<br />
students per year.<br />
Other actions that help reduce educational inequalities include the <strong>Aramex</strong> Excellence Award at the Industrial<br />
Engineering Dept Jordan University, and the <strong>Aramex</strong> Logistics Center for Excellence at the German Jordanian<br />
University.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 74
� Challenge 3: Reducing economic pressures and demands on young people<br />
One of the ways in which we help reduce economic pressures on young people is by providing employment<br />
opportunities to manage some of our other social investments. For example, we created the <strong>Aramex</strong>@Home<br />
(previously “Meals on Wheels”) program in Amman, Jordan. <strong>Aramex</strong>@Home provides delivery services for meals,<br />
medicine, and different products to people in Amman. We have college students aged 18‐22 who manage and<br />
operate this program under the supervision of our product Team Leaders. Over 500 students have been involved<br />
since inception of the program, and <strong>Aramex</strong> provides the opportunity for the students to receive an average wage<br />
50% above minimum wage. This opportunity both provides financial resources and prepares the students for future<br />
employment through practical project management experience.<br />
� Challenge 4: Supporting transition from education to employment<br />
In addition to the above‐mentioned +100 internships per year, we support the INJAZ program in Jordan. Since its<br />
inception in 1999, INJAZ has aimed at enhancing the skills of young people in public schools by increasing their<br />
participation in the economy. This helps bridge the existing gap between the knowledge acquired through education<br />
and the skills required by the job market. INJAZ does this by enhancing students' leadership, business<br />
entrepreneurial, problem‐solving, communication, and soft skills.<br />
<strong>Aramex</strong> has participated in this important program through school sponsorship, encouraged its employees to<br />
volunteer to teach the INJAZ curriculums, presentations about job market requirements to encourage students to<br />
round out their employability skills, and provide educational guidance for students.<br />
Community Empowerment and Sustainable Community Development<br />
In keeping with worldwide trends, <strong>Aramex</strong> was among the first companies in Jordan to recognize the importance of<br />
private sector contribution to sustainable community development. Through <strong>Aramex</strong>’s efforts, the company not only<br />
hopes to contribute to improvements in socioeconomic conditions, but also to set an<br />
example for other companies in Jordan by presenting successful case studies of its CSR<br />
projects to provide a framework for other companies to utilize in their own social<br />
responsibility programs. In early <strong>2006</strong>, <strong>Aramex</strong> played the lead role, in cooperation with<br />
other private sector companies, in establishing the Arab Foundation for Sustainable<br />
Development "Ruwwad". This is a non‐profit company working to improve the quality of life<br />
for communities and individuals in the Arab world. The mission of this foundation is to facilitate private sector<br />
investment and participation in sustainable development efforts in the Arab world. <strong>Aramex</strong> has agreed to commit a<br />
minimum of $200,000 for five years beginning in <strong>2006</strong>, giving it a 20% stake in the foundation.<br />
� Jabal Al‐Natheef<br />
The pilot initiative of "Ruwwad" is a sustainable Community Development project undertaken in partnership with<br />
local community organizations (Jabal Al‐Natheef) to enhance the quality<br />
of life of communities in under‐developed areas around Jordan. The<br />
program aims at engaging both young people and local community<br />
members in the development of their community, helping them to<br />
realize their potential, develop their personal and social skills, widen<br />
their horizons and take advantage of existing and potential<br />
opportunities.<br />
The first neighborhood selected for this project is Jabal Al‐Natheef,<br />
which is an area within the east side of Greater Amman Municipality<br />
(GAM) incorporating a refugee camp that is not officially recognized as<br />
such, and therefore remains under‐developed and badly constructed.<br />
The entire area of 70,000 people suffers from high population density,<br />
crowded living conditions, and the presence of only one primary school<br />
which is cramped, has huge budgetary constraints and is in desperate<br />
need of structural work. The area suffers from 50% higher<br />
unemployment than the national average, and 50% fewer higher<br />
education graduates. It also lacks a police station, a health center, a<br />
"The emphasis is on a two-way<br />
street so that the notions of<br />
beneficiary and benefactor do not<br />
come into play; the company fulfills<br />
its obligation towards the<br />
community but also engages the<br />
community in ways which are<br />
mutually beneficial. Volunteers take<br />
part in activities that help others but<br />
which are also rewarding. Members<br />
of the community can receive the<br />
help they need, but also give back<br />
to others so that they are<br />
empowered rather than made to<br />
feel like charity cases."<br />
- Raghda Butros, Director, Ruwwad<br />
library, any recreation areas for children or any public parks or gardens. Possibly the largest challenge facing the area,<br />
is a rampant drug and domestic violence problem which is gripping its young people and leaving its residents in fear<br />
for their lives.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 75
� Approach to decision‐making and priority issues<br />
The project started by <strong>Aramex</strong> in May 2005 with preliminary meetings<br />
with community representative from the area who were identified<br />
through local associations, charitable organizations and community<br />
groups. These meetings resulted in the drawing up of a list of priorities<br />
pinpointing those issues which the people of the area felt were most<br />
essential to the improvement of their living conditions. This list included<br />
the establishment of police kiosks, the restoration of the local school,<br />
the building of a public library, and the setting up of recreational<br />
programs including a center catering for the young people of the area.<br />
A post office was also suggested, as was extensive work on the<br />
infrastructure of streets and pavements, in addition to an improvement<br />
in garbage and rubbish collection facilities.<br />
"The children have been given the<br />
greatest gift of all, thanks to the<br />
Foundation, their spirit has been reawakened<br />
and they have a newlease<br />
on life. Grammar and<br />
Mathematics classes alone cannot<br />
achieve this, but when a child is<br />
given hope and compassion and<br />
made to feel that he or she has<br />
worth, they truly learn, grow and<br />
blossom. This is the best lesson of<br />
all."<br />
- Rabiha Khalil, Headmistress of<br />
Atika Bint Zeid Primary School<br />
� <strong>Aramex</strong> involvement<br />
As <strong>Aramex</strong> set out to contribute to the realization of the above‐mentioned needs via the Foundation, the company<br />
concentrated on four main approaches to get the project underway. Firstly, volunteerism by company employees<br />
who are directly engaged with the local community to achieve the results that were set forth in the program plan;<br />
secondly, financial contributions towards the realization of the project goals; thirdly, using <strong>Aramex</strong>’s offices to<br />
engage decision makers and to mobilize government and civil society organizations where necessary for the<br />
achievement of program aims; and fourthly, involving other private sector companies in the process by enlisting<br />
donations of goods and services.<br />
� Achievements to date<br />
At the end of <strong>2006</strong>, the following achievements against the original list had been secured:<br />
Supporting Youth in Jabal Al‐Natheef: <strong>Aramex</strong> contributed to the establishment of the Mousab Khorma Youth<br />
Empowerment Fund which seeks to carry a message of hope to young people by providing them with the<br />
opportunity to learn, develop their talents and skills, and expand their potential to help them to lead successful and<br />
fruitful lives.<br />
This Fund was initiated in memory of Mousab Khorma, as a tribute<br />
to his contribution to the communities in which he lived and worked.<br />
The Fund will supply financial and practical advice, and support<br />
through loans and scholarships to enable young people from under‐<br />
served communities to attend university, develop a métier, embark<br />
on a project or pursue an artistic aptitude. This, in turn, will create a<br />
pool of qualified and eligible employees from those who benefit<br />
from the funding for companies to train and hire.<br />
First Semester<br />
Academic Year<br />
<strong>2006</strong>/2007<br />
Second Semester<br />
Academic Year<br />
<strong>2006</strong>/2007<br />
Male 90 94<br />
Female 63 67<br />
Total 153 161<br />
In <strong>2006</strong>, The Mousab Khorma Youth Empowerment Fund was able during the last four semesters to reach and<br />
support the target of 160 students per semester to start and complete their education in universities, colleges, and<br />
vocational training centers.<br />
Renovation of the local primary school, including a total overhaul of the building inside and out, construction of new<br />
toilet facilities, and manufacturing new and tailor‐made furniture. All changes were undertaken with the approval of<br />
the Ministry of Education and according to their standards and specifications. A large proportion of the materials<br />
used to restore the school came in the form of donations from other Jordanian companies including Maani Group,<br />
Petra Aluminum, National Paints, Jordan Steel and JWICO. <strong>Aramex</strong> enlisted the support of these companies, who<br />
proved instrumental not only in monetary terms but also in illustrating the enthusiasm of the private sector for such<br />
a project. Local builders and skilled laborers were hired for all work done on the school to provide job opportunities<br />
and to generate local support.<br />
Agreement by the Ministry of Interior for the establishment of a police station: At a meeting held at the Ministry of<br />
Interior, representatives from Jabal Al‐Natheef and from <strong>Aramex</strong> met with the Minister and managed to secure a<br />
promise to establish police kiosks in the most problem‐ridden area in the community. A site will be purchased, and<br />
the police station will start operating officially during 2007.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 76
Establishment of key public services: A building was purchased in<br />
Jabal Al‐Natheef which houses a public children’s library that was<br />
established in cooperation with GAM (Greater Amman<br />
Municipality) which provided funding to bring the needed materials<br />
and books. A post office is opened and managed by Jordan Post to<br />
provide different public services. In addition to a multipurpose area<br />
to host events and seminars for the local community, and a<br />
management office as Ruwwad's headquarters to handle local<br />
concerns have been opened.<br />
Initiatives for children such as photography and reading projects:<br />
A small project initiated by volunteers with the third‐grade students<br />
(boys and girls aged 9‐10) at Atika Bint Zeid School to encourage<br />
and promote creative thinking and expression through story‐telling,<br />
art, meditation and photography. The photos taken by the children<br />
of their environment will be published in a book to be sold in Jordan<br />
and the region. Also, the University students initiated and<br />
"All the teachers here are very kind<br />
to us and we learn how to cooperate<br />
and be caring for each<br />
other, this makes us feel like we are<br />
one big family.<br />
Before I came to the Foundation, I<br />
used to play with my friends in the<br />
street because our house is very<br />
small and my mother has to take<br />
care of my baby brothers and<br />
sisters. Nowadays, I don't need to<br />
spend my free time in the streets as<br />
my friends and I come here to learn<br />
or play games, like puzzles, board<br />
games and even volleyball."<br />
- Ahmad (age 9)<br />
implemented a summer camp workshop at the school, which more than 500 children attended to participate in<br />
workshops for music, art, dancing and poetry.<br />
Building Houses for those in need: A pilot project was implemented to build a home in Jabal Al‐Natheef with 5 CEOs<br />
volunteering their time for one day to assist with the building and to contribute funds towards the cost of the<br />
building to assess whether a long‐term project is viable. The foundation, in collaboration with Habitat for Humanity,<br />
is working in the area to help renovate some of the houses.<br />
Work with the Ministry of Health for the establishment of a Health Center and possible recreation park: The<br />
Foundation reached an agreement with Ministry of Health to open a new Health Center at the area. The Foundation<br />
is in the process of renovating the venue, in order for the Ministry of Health to operate during mid 2007.<br />
At every step of the project we aim to ensure buy‐in from community members by prioritizing issues according to<br />
their recommendations, creating strong relationships with a wide cross‐section of the community, involving the<br />
community in decision‐making and implementation, and communicating a clear message of sustainability which<br />
includes handover to the community.<br />
� Moving Forward at Jabal Al‐Natheef<br />
While well on its way, the project is far from complete. Trust is still difficult to earn and easy to lose in a community<br />
that has many reasons to mistrust the intentions of stakeholders who have traditionally sidelined, marginalized, and<br />
ignored the needs of these persons. As a result of this project we have learned that there is a pressing need for the<br />
creation of opportunities for young people to study, work and express their talents and ambitions. And social<br />
initiatives should focus on supporting these communities to get more attention and representation to better<br />
improve the quality of life of all people.<br />
In order to ensure sustainability and continued involvement, the foundation in coordination with the local<br />
community members, NGOs and the private sector are working to tackle issues related to awareness, infrastructural<br />
needs, youth empowerment and job creation, government follow‐up and income generating projects.<br />
Entrepreneurial spirit: The Foundation is going to launch the Micro Venture Capital Fund during 2007. The fund aims<br />
at providing more entrepreneurs the opportunity to start their own businesses. Ruwwad will help identify business<br />
needs in underserved communities in order to create job opportunities in areas of high unemployment.<br />
In the hope of creating the culture of entrepreneurship within the community, Ruwwad is working to run workshops<br />
and awareness campaigns on the benefits of writing business plans, the concept of entrepreneurship and how to<br />
access funding, along with creating partnerships between the private sector and the underserved communities.<br />
Ruwwad will develop a process by which community members will be able to create, develop and sell their ideas to<br />
investors, and seek funding in order to achieve their goal.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 77
Sustaining cultural development: The Foundation will work during 2007 to raise the standards of teaching and<br />
introduce a cultural curriculum at the local primary schools in Jabal Al‐Natheef. The project will utilize existing<br />
computers at the school for use by students and teachers in new learning. Capacity‐building training will also be<br />
organized for the teachers at the schools and life skills training for the students when the school year begins.<br />
Emergency and Disaster Relief<br />
The world is fraught with natural and human disasters, with severe and tragic loss of life and hardship. As part of all<br />
these societies we have been compelled to do what we can to help. As a logistics and transportation company with a<br />
reputation for caring for our society, we are uniquely positioned to use our core business competencies to make an<br />
important contribution.<br />
We specialize in moving goods around the world as quickly and efficiently as possible. When disaster strikes, we can<br />
collect aid and assist in its distribution at a very rapid pace.<br />
� Lebanon Aid program<br />
<strong>Aramex</strong> employees organized campaign called ‘Aid Lebanon With Us’ to support the people of Lebanon under siege.<br />
The company led a successful effort to set up a relief network throughout the GCC and the Middle East to collect aid<br />
donations. Hundreds of drop points were organized in the various Arab cities to gather tons of aid material ‐ ranging<br />
from food, through hygiene products such as soap and cleaning fluids, to medical supplies. Additional medical<br />
supplies for chronic diseases such as heart ailments and diabetes have also been contributed.<br />
<strong>Aramex</strong>’s task force promptly devised an action plan to assemble tons of aid materials from the various collection<br />
points and sort them out by categories namely food, hygiene products and medical supplies. The team packaged<br />
these materials and shipped them to the set destination in Lebanon. The aid was provided to the Lebanese<br />
government through the international relief organization, the Red Crescent.<br />
<strong>Aramex</strong> cooperated with a number of companies such as the Emirates National Oil Company (ENOC) and Majid Al<br />
Futtaim Group in the UAE, as well as other associations namely the Jordan Hashemite Charity Organization and the<br />
Jordan River Foundation (JRF) plus other local and regional civil society organizations to run this successful relief<br />
campaign. In total, <strong>Aramex</strong> delivered over 500 tons of food and medicines generously donated by people of the<br />
region.<br />
� Palestine Aid Program<br />
<strong>Aramex</strong> relief efforts, through its station in Ramalah, helped in many humanitarian efforts such as facilitating and<br />
moving goods to the refugees in different places in Palestine. A campaign was launched to secure the needed<br />
medical equipments and daily supplies of food and other materials.<br />
� Pakistan Earthquake<br />
<strong>Aramex</strong> relief efforts, as part of the Dubai based Airport Emergency Team, took off for Islamabad airport to aid the<br />
Pakistan earthquake relief effort. A top‐level delegation from <strong>Aramex</strong> joined the Airport Emergency Team to<br />
Pakistan to coordinate the logistics of arranging the humanitarian aid flying from all over the globe to Islamabad<br />
Airport.<br />
As part of the relief campaign, <strong>Aramex</strong> set up emergency collection points at various ENOC, EPPCO and EMARAT<br />
service stations across UAE. The relief supplies collected at these vantage points included tents, blankets, non‐<br />
perishable food and medicines.<br />
� South Asia Tsunami (end 2004, early 2005)<br />
<strong>Aramex</strong> has experience of organizing other aid in emergency situations for many years. For example, on New Year’s<br />
Eve 2004, <strong>Aramex</strong> launched a campaign to support victims of the tsunami. 40 tons of emergency relief supplies were<br />
collected in the space of just 48 hours. <strong>Aramex</strong> shipped the relief supplies to the affected areas and delivered them<br />
to the Red Cross in India and the Ministry of Social Affairs in Sri Lanka before January 6 th . Other companies in the<br />
region assisted this campaign by offering collection points – including ENOC, EPPCO, and EMARAT service stations –<br />
for people to contribute. Some of the emergency supplies included 150 portable electric generators, tents, blankets,<br />
pre‐cooked food, water purification tablets, wheat flour and medicines.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 78
Moving up our Model<br />
As is evident, many of our community investment initiatives involve not only charitable donations but work their way<br />
up our model. For example, our investment in young people includes the use of our core business competencies to<br />
offer internships. In our work on sustainable community development, we took an approach that emphasized the<br />
top level of our model – leveraging the resources and capabilities of others. We created the Arab Foundation For<br />
Sustainable Development "Ruwwad” in order to leverage the capacities of many companies, and we put this same<br />
approach into practice when rehabilitating the local school. We also focused on using our lobbying and leverage<br />
capabilities to allow marginalized stakeholders in our communities to engage with their respective governments (in<br />
the case of Jabal Al‐Natheef, the Greater Amman Municipality).<br />
As noted, developing our ‘Investment in Society model’ has sparked renewed enthusiasm and creativity in exploring<br />
how we can maximize our positive impact on society. We aim to explore how our products, services, and core<br />
competencies can be modified to provide affordable services to meet the needs of the world’s marginalized, while<br />
operating within a business model. We hope to continue to expand the scope and impact of the Foundation and its<br />
partner companies. And although it falls beyond just the scope of our ‘investment in society’, we also aim to take a<br />
major leadership role in encouraging the adoption of sustainability management and reporting in the Arab world,<br />
and throughout the Global Distribution Alliance.<br />
A summary of our 2007 priorities for Investment in Society is captured on the first page for this section.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 79
OUR BUSINESS PARTNERS AND THE<br />
GLOBAL DISTRIBUTION ALLIANCE<br />
Our Perspective<br />
W e b e l i e v e t h a t w e m u s t r e a c h t o g e t h e r w i t h o u r<br />
p a r t n e r s f o r m a x i m u m a n d g l o b a l s u s t a i n a b l e i m p a c t .<br />
Long-Term Strategic Goal<br />
Commit to apply the best international practices in every<br />
aspect of our work with our partners, suppliers, and alliance.
Inside this Section:<br />
� Enhanced reach through a strong Global Distribution Alliance Page 82<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Served as ‘operations<br />
manager’ company for the<br />
GDA<br />
� Continue role as<br />
‘operations manager’ for<br />
the GDA<br />
� Launch and coordinate a<br />
<strong>Sustainability</strong> experience<br />
sharing and training forum<br />
for the GDA<br />
� Have successfully<br />
encouraged full tracking of<br />
greenhouse gas emissions<br />
among GDA partners<br />
� Have contributed to a<br />
significant reduction in<br />
emissions per shipment<br />
across the GDA<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 81
Enhanced Reach through the Global Distribution Alliance<br />
The Global Distribution Alliance (GDA) is a partnership of over 40 leading logistics and transportation companies.<br />
With operations throughout the world, the GDA is strategically positioned to provide swift and reliable global<br />
transportation solutions, with each member of the alliance providing an extensive coverage and expertise in each<br />
region of the world.<br />
The GDA is a key partner for <strong>Aramex</strong> in ensuring total worldwide coverage, in‐depth local market knowledge, and<br />
consistently high quality service around the globe. The GDA functions with unified organizational and operational<br />
procedures as well as uniformed quality of service standards.<br />
The GDA offers comprehensive tracking facilities utilizing the most modern Information Technology systems allowing<br />
alliance partners or their customers to track and trace shipments anywhere in the world with the click of a button.<br />
� A Strong Relationship<br />
<strong>Aramex</strong> plays a key role in supporting the GDA. The GDA Board has unanimously appointed <strong>Aramex</strong> as the<br />
‘Operations Manager’ company for the GDA Network, which involves managing the day‐to‐day running and<br />
administration of the GDA Network. Furthermore, the ‘Operations Supplies Team’ at the GSO is responsible for the<br />
procurement and management of the GDA Network and its partners’ operational supplies. The GDA Board, through<br />
the GSO, is responsible for establishing guideline policies for the network to operate within.<br />
The primary hubs for the GDA network are located in the following locations: Dubai (United Arab Emirates), London<br />
(United Kingdom), Paris (France), Liege (Belgium), Singapore, and Hong Kong.<br />
� Quality of Service Standards<br />
The GDA Network, through the GSO, regularly audits its partner operations against predefined service standards in<br />
order to evaluate the performance and progress of the network. There are 18 GDA Quality of Service Standards.<br />
Furthermore, through the <strong>Aramex</strong> InfoAXS system, partners are also able to ‘self audit’ themselves at any point in<br />
time.<br />
� Integrating <strong>Sustainability</strong><br />
The partners in the GDA will be at different stages in the implementation of sustainability. In 2007 we hope to<br />
establish a framework and forum for experience sharing and joint learning in order to accelerate the adoption of<br />
sustainability management by the members of the GDA. Over time, this will significantly reduce the shared carbon<br />
intensity of our services. We hope that by 2009, we will have successfully encouraged full tracking of greenhouse gas<br />
emissions among GDA partners, and have contributed to a significant reduction in emissions per shipment across the<br />
GDA (target is still to be determined in consultation with GDA)<br />
Global Distribution Alliance Fact Sheet<br />
Fact 2005 <strong>2006</strong> Period<br />
Consolidated Partner Sales Revenues (estimated) 7.5 Billion US$ 7.5 Billion US$ Per Annum<br />
Consolidated Worldwide Partner Offices (estimated) 12,000 + 10,800 +<br />
Consolidated Partner Employees (estimated) 66,000 + 60,000 +<br />
Consolidated Partner Vehicles (estimated) 33,000 + 18,000 +<br />
Number of Tracking System Locations 180 + 150 +<br />
Tracking System Users (employees) 4,000 + 4,000 +<br />
Average International Express Shipments (7 day week) 12,000 + 12,000 + Per day<br />
Average International Express Weight (7 day week) 25,000+ 25,000+ Per day (Kg)<br />
Line‐haul Route Operations 3,000 + 1,000 + Per day<br />
Scanner Transmissions 700+ N/A Per day<br />
Shipment Scans 18,000+ N/A Per day<br />
Server Transactions 0.5 M+ 0.5 M+ Per day<br />
EDI file Transmissions 1000+ 1000+ Per day<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 82
ENVIRONMENTAL LEADERSHIP<br />
Our Perspective<br />
We m u s t i n n o v a t e t o w a r d s a n e c o n o my t h a t d o e s n o<br />
h a r m t o, a n d h e l p s t o r e g e n e ra t e , o u r e n v i ro n m e n t .<br />
Long-Term Strategic Goal<br />
B e t h e f i rst m a j o r l o g i s t i c s a n d e x p r e s s t ra n s p o r t a t i o n<br />
s e r v i c e p ro v i d e r i n t h e w o r l d t o b e c a r b o n n e u t ra l .
Our Planet: Climate Change, Environment and <strong>Sustainability</strong> Innovation<br />
Inside this Section:<br />
� Create a <strong>Sustainability</strong> Innovation Culture Page 85<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Established Climate Change, Environment,<br />
and <strong>Sustainability</strong> Innovation Working<br />
Group at GSO<br />
� Conducted first company‐wide survey to<br />
begin understanding environmental<br />
impact and priority risks and<br />
opportunities<br />
� Establish a <strong>Sustainability</strong><br />
Innovation Index to<br />
measure degree to which<br />
innovation is linked to<br />
sustainability considerations<br />
� Establish Environmental Management System (EMS) Page 86<br />
� Achieve 80% average of ‘Excellent’<br />
score on <strong>Sustainability</strong> Innovation<br />
Index<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Identified key gaps in<br />
management systems and<br />
data collection<br />
� Design and implement EMS based on<br />
ISO14000<br />
� Begin tracking of environmental KPIs<br />
� Significantly expand environment‐related<br />
training<br />
� Achieve Dramatic Performance Improvement Page 87<br />
� All stations capable of certification<br />
against ISO14001<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Initiated our efforts to<br />
collect key environmental<br />
data and establish<br />
baseline performance<br />
values<br />
Emissions‐related:<br />
� Reduce Emissions: 15% reduction per<br />
shipment (includes NOx, others)<br />
� Reduce Fuel Consumption: 5% reduction<br />
per shipment<br />
� Reduce driving time: 5% reduction<br />
� Transition type of vehicle fuel used:<br />
Transition at least 2 stations from leaded<br />
to unleaded<br />
� Transition of vehicle fleet towards LEV<br />
(low‐emission vehicles), ULEV, SULEV and<br />
other alternative fuel vehicles (PZEV):<br />
� Upgrade 33% of fleet one category (3)<br />
� Purchase or lease 2 hybrid electric<br />
vehicles<br />
Reduce, Re‐use, Recycle:<br />
� Increase recycling of packaging and<br />
recycled content, and set end 2009 targets<br />
� Reduce water consumption by 5%<br />
� Reduce paper consumption by 5% and<br />
achieve 10% paper recycling<br />
� Develop Innovative ‘<strong>Sustainability</strong> Services’ Page 90<br />
Emissions‐related:<br />
� Reduce Emissions: 50% reduction<br />
per shipment (includes NOx, others)<br />
� Reduce Fuel Consumption: 20%<br />
reduction per shipment<br />
� Reduce driving time: 10% reduction<br />
� Transition fuel type: 100%<br />
transition from leaded to unleaded<br />
� Transition of fleet towards LEV,<br />
ULEV, SULEV and other alternative<br />
fuel vehicles (PZEV)<br />
� 50% of fleet at Euro 4 or higher<br />
� Minimum of 10 hybrid electric<br />
vehicles<br />
Reduce, Re‐use, Recycle:<br />
� Achieve 2009 targets for recycling<br />
of packaging and recycled content<br />
� Reduce water consumption by 20%<br />
� Reduce paper consumption by 25%<br />
and achieve 90% paper recycling<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Identified key gaps in<br />
management systems and<br />
data collection<br />
� Take initial steps towards development of<br />
‘low carbon’ and ‘carbon neutral’ shipping<br />
services<br />
� Identify top ‘sustainability service’<br />
opportunities related to reducing traffic<br />
impacts helping shape ‘Sustainable Cities’,<br />
and introduce at least one innovation<br />
(3) According to standards such as Euro1, Euro2, Euro3, Euro4<br />
� 2% of revenues from carbon<br />
neutral services<br />
� 2 new successful ‘Sustainable<br />
City’ services<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 84
Key Area: Create a <strong>Sustainability</strong> Innovation Culture<br />
We believe that environmental opportunities are very high on the<br />
sustainability opportunities agenda for <strong>Aramex</strong>. We believe that humans are<br />
changing the atmosphere and that ‘climate change’ and ‘global warming’ are<br />
real phenomena and threats. We accept that greenhouse gas emissions<br />
(GHG), particularly carbon dioxide (CO2) are most likely the main human‐<br />
induced cause of climate change. We therefore believe that it is critically<br />
important for business to aggressively work towards ‘carbon neutrality’ to<br />
mitigate the risks of climate change.<br />
‘Carbon neutrality’ refers to the idea that our overall operations will have<br />
zero net greenhouse gas emissions to the atmosphere. For example, we may<br />
be able to reduce our existing emissions by 80% over the medium term. Of<br />
the remaining emissions, we would work towards ‘offsetting’ those<br />
emissions – either by purchasing ‘carbon credits’ on exchange markets, or by<br />
undertaking or supporting initiatives that create measurable and verifiable<br />
carbon mitigating actions (e.g., support tree‐planting). Given that our<br />
business relies on transportation mechanisms that are currently powered by<br />
‘Climate change’ refers to<br />
the increasing levels of CO2<br />
in our atmosphere from<br />
man‐made activities –<br />
including motor vehicles and<br />
most energy consumption –<br />
and the corresponding<br />
changes that are occurring in<br />
our natural environment as a<br />
result of these increased CO2<br />
levels. Internationally,<br />
climate change has emerged<br />
as one of the most pressing<br />
global issues.<br />
CO2‐emitting technologies, environmental management and carbon neutrality are massive challenges.<br />
Nonetheless, we are certain that environmental innovation will be a key driver and success factor for our business.<br />
As such, we have decided to make an enormously bold, ambitious, and provocative target: We aim to be the first<br />
global logistics and express transportation service provider in the world to be carbon neutral.<br />
We have a long way to go to achieve this goal, starting with corporate culture.<br />
Environmental issues and environmental sustainability is not yet a common<br />
subject in the Middle East and Gulf as it is in Europe or increasingly North<br />
America. Targeting environmental innovation first requires generating<br />
awareness of key environmental issues and their relevance and importance.<br />
However, at <strong>Aramex</strong>, we know that our employees like to do the ‘right’ thing.<br />
We therefore believe that with a growing amount of new knowledge on the<br />
We aim to be the first<br />
global logistics and<br />
transportation service<br />
provider in the world to be<br />
‘carbon neutral’.<br />
subject, our people will aggressively pursue this opportunity to enhance the business while enhancing our world. In<br />
addition to a focus on emission reductions and carbon neutrality, we aim to implement a ‘war on waste’, from which<br />
we also expect significant business benefits in the way of reduced input costs.<br />
Overall, we want to pursue environmental performance improvement from both a risk and opportunity perspective.<br />
On the risk side, we realize that if we do not keep pace or outpace our competitors, then they may develop cost and<br />
service advantages. These could include reduced fuel costs, reduced carbon emissions costs or increased carbon<br />
credits, reduced input costs by eliminating waste, better lending rates due to lower risks, offering of ‘green package<br />
services’, etc. On the opportunity side, however, we can take each of these risks and with performance leadership,<br />
turn them into a competitive advantage.<br />
We are confident that if we integrate environmental sustainability into the <strong>Aramex</strong> culture, then the performance<br />
results will flow naturally as our people perform across other elements. As a starting point for implementation, in<br />
2007 we aim to:<br />
� Put in place an environmental policy and environmental management system<br />
� Fully assess and measure the status of our CO2 and other emissions, identify immediate opportunities for<br />
improvement, and take action<br />
� Fully assess and measure our overall environmental impact (e.g., with regard to water, types and quantities<br />
of waste, etc.), identify immediate opportunities for improvement, and take action<br />
� Conduct extensive training in the area of environment and environmental management<br />
� Increase our engagement with key internal and external stakeholders to find out from them how we can<br />
help reduce our environmental impact<br />
� Establish a <strong>Sustainability</strong> Innovation Index to measure the degree to which sustainability innovation is<br />
equated to corporate culture. This will be achieved through a subset of questions in an annual employee<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 85
survey. By the end of 2007 we aim to receive 75% responses as ‘Good’ score, and by end 2009 we aim to<br />
receive 80% of responses as ‘Excellent’ score.<br />
Key Area: Establish Environmental Management Systems<br />
We currently do not have a system for tracking our environmental performance. However, we have been able to<br />
generate some baseline environmental data by reviewing invoices that include environmental information (e.g.,<br />
water consumption bills). We continue to work on the baseline data for more environmental indicators – particular<br />
our greenhouse gas emissions ‐ and will make these available on our website as soon as they are finalized. We also<br />
have emerging tools such as our self‐developed Fleet Management System and our Vehicle Tracking System, (see<br />
insert box) as well as existing tools such as our Stock Management System and Purchase Order System which have<br />
components that will be essential to tracking our environmental performance and can be immediately implemented.<br />
For example, the FMS records type of fuel, fuel consumed, amount of oil used, washing information, maintenance<br />
information, total kilometers driven, and other critical information for environmental data tracking. Furthermore, we<br />
have the opportunity to enhance these systems to include additional key environmental data parameters, as<br />
required. We have been piloting the FMS and VTS in certain locations in <strong>2006</strong> and are rolling these systems out<br />
across our operations in 2007.<br />
However, our number one task in order to properly, systematically and aggressively track and enhance our<br />
environmental performance and drive sustainability‐oriented innovation, is the development of an effective<br />
environment management system that is integrated with these emerging and existing systems and our management<br />
decision‐making. In 2007 we will design and implement an environmental management system including finalization<br />
and tracking of key performance indicators (KPIs). We will<br />
design an integrated environmental system using best practice<br />
and consistent with ISO14000 standard for environmental<br />
management systems. Our commitment by 2009 (a KPI) is to<br />
ensure that all of our operations are in a position to be audited<br />
and able to achieve certification to ISO14000 if desired. A<br />
decision on certification against ISO14000 will be made at a<br />
later time – our initial focus is on performance improvements.<br />
� Starting point for implementation of EMS<br />
With regard to implementation of environmental<br />
enhancements from a human resources perspective, as with<br />
health and safety, we have initiated a process for a more<br />
structured approach to environmental management. We have<br />
established a ‘Climate Change, Environment, and <strong>Sustainability</strong><br />
Innovation’ Working Group at the GSO level. Following the<br />
proposed health and safety model, we intend to establish a<br />
contact person specifically for Environment at each major<br />
station, who will serve as a champion of awareness, training,<br />
implementation and tracking of performance at the stations,<br />
while also contributing to corporate environment strategy and<br />
plans. For larger stations, these contact persons will coordinate<br />
an environment committee at the station. Also, one of our<br />
acquisitions of <strong>2006</strong>, TwoWay Vanguard, is ISO14001:2004<br />
certified (this represents about 20% of our <strong>2006</strong> revenues). We<br />
therefore intend to use their experience in building our<br />
corporate wide systems.<br />
� Vehicle Tracking System and Route Optimization<br />
Vehicle Tracking Systems are commonly used by fleet operators<br />
for fleet management functions such as routing, dispatch,<br />
onboard information, monitoring driving behavior (safety and<br />
vehicle abuse) and security (theft prevention and retrieval<br />
device).<br />
The VTS devices collect information and data (location, speed,<br />
Fleet Management System<br />
FMS is a system that contains complete and<br />
up‐to‐date information about <strong>Aramex</strong> fleet,<br />
tracking all the fleet's transactions and<br />
provides financial information to the<br />
accounting department. Also this system is<br />
considered as a base for a complete Vehicle<br />
Tracking System. The FMS is divided into 2<br />
phases:<br />
Phase 1: Data Entry‐ the module allows users<br />
to enter complete information of <strong>Aramex</strong>'s<br />
vehicles and to have some reports that allow<br />
the stations to manage their fleet:<br />
Purchased Vehicles<br />
Leased Vehicles<br />
Rented Vehicles<br />
Owner Operated<br />
Vehicles<br />
Vehicle Expiry Date<br />
Rpt<br />
Vehicle Renewal Date<br />
Rpt<br />
Violations<br />
Phase 2: Monitor and control‐ features added<br />
to start monitoring all the costs of our fleet<br />
whether fixed cost or running costs and to<br />
manage all the drivers’ (couriers) issues.<br />
Fixed Costs Info:<br />
Monthly washing cost<br />
Yearly registration<br />
cost<br />
Yearly insurance cost<br />
Monthly leasing cost<br />
Others fixed costs<br />
Running Costs Info:<br />
Fuel<br />
Oil<br />
Breaks<br />
Wheels<br />
Wipers<br />
Spark Plugs<br />
Violations<br />
Maintenance and<br />
repairs<br />
Accidents<br />
Other running Costs<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 86
direction, and switch key on/off) and transmit it in real‐time via cellular networks to a computer system for analysis<br />
and evaluation. The first benefit is on time tracking, monitoring, and control of the vehicle. It will provide the<br />
concerned parties (management, operations, and dispatcher) with sufficiently accurate on‐time information<br />
regarding the fleet that is much needed for certain decisions to be made.<br />
The system will save all detailed history of the daily vehicles activity and will accordingly allow for different kinds of<br />
analysis of this historical data through the use of additional powerful query and analysis tools.<br />
Optimization algorithms that take route traffic and accessibility into account will be the next addition to the Vehicle<br />
Tracking System. <strong>Aramex</strong> realizes the importance of optimized routes for better delivery and pickup and has invested<br />
significant money and effort in developing an understanding of how to reach higher efficiency with the routes to<br />
allow for better planning and smoother dispatching. Additional functionality will allow the importation of planned<br />
routes to the system, where these planned routes will be in tabular format indicating reference to pre‐mapped<br />
locations and expected times of arrival and estimated stops duration.<br />
Stations that budgeted for the VTS will be approached with the system before the end of 2007. These stations are:<br />
Jeddah, Dhahran, Riyadh, Amman, Beirut, Cairo, Dubai, Abu Dhabi, and Kuwait. More <strong>Aramex</strong> stations will be<br />
targeted in the second quarter of 2008.<br />
Route Efficiency is a part of the efficiency and improvements process. It would rely heavily, but not solely, on the VTS<br />
as a tool for gathering data and studying the changes made. General Route Efficiency tools are being developed now<br />
to be used fully on the stations after the deployment of VTS. This means that Route Efficiency will go live across the<br />
network in the first quarter of 2008 (whether the station has VTS or not). The stations being targeted for Route<br />
Efficiency and Optimization are: Abu Dhabi, Dubai, Riyadh, Jeddah, Amman, Beirut, Cairo, Dhahran, Kuwait, Bahrain,<br />
Damascus, Mumbai, and other possible stations in Asia.<br />
Key Area: Achieve Dramatic Performance Improvements<br />
� The non‐asset based advantage<br />
<strong>Aramex</strong> is a non‐asset based company. We use other companies – for example airlines – to move most of our<br />
packages, and we primarily lease motor vehicles as opposed to owning them. This presents a tremendous<br />
opportunity to rapidly reduce our emissions. For example, we can more easily change the types of vehicles we lease<br />
to ensure reduced environmental emissions. We can also add an environment‐related criteria to our decisions<br />
around which airlines we select to move our packages – for example, we can give a certain weight to the fuel‐<br />
efficiency of the fleets of different airlines. Furthermore, we believe that these companies have financial means to<br />
make a transition towards green transportation. Our role can be to support their transition by prioritizing the green<br />
services they offer.<br />
� The non‐asset based challenge<br />
While this ‘non‐asset‐based’ business model creates a real opportunity in emissions reduction, it also raises<br />
questions as to how we should calculate our total emissions. Do we only include full emissions relating to our owned<br />
vehicles, while sharing emissions on leased vehicles? Do we include a share of the CO2 emissions from flights<br />
carrying our packages? If so, do our clients who track their emissions include the emissions relating to the<br />
movement of goods (just as many of them track their emissions relating to the movement of their people)? If so,<br />
how can we team up with our clients to accelerate the process of simultaneously reducing our emissions and their<br />
emissions?<br />
Both of these aspects – the non‐asset based advantages and the challenges – will be central considerations in<br />
solidifying and testing our KPIs, and of the <strong>Aramex</strong> environmental management system.<br />
� Performance priorities and goals<br />
We have identified two main thrusts for performance improvement through efficiency‐oriented innovation:<br />
1) Emissions‐related impacts<br />
2) Reducing other environmental impacts by reducing, re‐using, recycling and green design<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 87
� Emissions‐related impacts – Direct energy consumption<br />
Our number one environmental impact relates to our direct and shared emissions of our owned and leased vehicle<br />
fleets, and of the aircraft and other modes of transportation we use. Given that this is our biggest environmental<br />
impact, and given that climate change is a top global environmental issue and priority, we are prioritizing our efforts<br />
on this issue.<br />
Overall, we hope to significantly reduce our fuel consumption and especially related emissions (CO2, NOx, others) per<br />
shipment in the short term. Because we did not track many aspects of our environmental performance previously,<br />
we have been unable to establish acceptable estimates for our past greenhouse gas emissions. Nonetheless, we are<br />
currently putting in place the necessary systems to track and determine current greenhouse gas emissions, which we<br />
will adjust accordingly to serve as our end of <strong>2006</strong> baseline. We will make this information available online as soon<br />
as it has been and it will also be included in our next report. Furthermore, we have learned a tremendous amount<br />
about our fleet and the environmental opportunities at hand, and thus are able to set aggressive performance<br />
numbers for 2007 and 2009. Our targets for 2007 are 15% reduction in emissions per shipment, with a goal of 50%<br />
reduction by end of 2009, and 5% reduction in fuel consumption per shipment, with a goal of 20% reduction by end<br />
of 2009.<br />
Diesel<br />
(units)<br />
Unleaded<br />
(liters)<br />
Motor Vehicle Fuel Consumption (Direct<br />
energy footprint)*<br />
Leaded<br />
(liters)<br />
3,284,388<br />
2,373,828<br />
2,020,897<br />
778,498<br />
641,693<br />
539,444<br />
5,275,432<br />
3,815,390<br />
3,444,251<br />
<strong>2006</strong><br />
2005<br />
2004<br />
* Estimated quantity representing data from 22 stations plus<br />
TwoWay Vanguard, covering 77.38% of revenue<br />
1,738,106<br />
Total $ Spent on Fuel<br />
2,341,608<br />
3,548,855<br />
2004 2005 <strong>2006</strong><br />
We collected information to approximately calculate our direct fuel consumption, by surveying and gathering<br />
information about diesel, leaded and unleaded consumption. We received data from the following stations: (Amman,<br />
Beirut, Ramallah, Cairo, Casablanca, Abu Dhabi, Dubai, Jeddah, Kuwait, Riyadh, Bahrain, Dhahran, Muscat, Doha,<br />
Tehran, Athens Istanbul, Prague, Montreal London Hong Kong, Colombo, and TwoWay).<br />
149<br />
12<br />
12.5%<br />
166<br />
93 79<br />
0 15 0<br />
42<br />
163<br />
57 85<br />
297<br />
0 0 0 0 3 0 1 0<br />
Truck Regular Van Small Van Regular Car Motorcycle Three Wheeler Small boat (not<br />
ship)<br />
Fleet % by Type of Fuel Used*<br />
55.5%<br />
32.0%<br />
Diesel<br />
Unleaded<br />
Leaded<br />
<strong>2006</strong> Fleet Information and Type of Fuel Used*<br />
Diesel Unleaded Leaded<br />
* Represents data from 13 stations plus TwoWay Vanguard, covering 71.59%<br />
of revenue (excludes forklifts). Data for TwoWay Vanguard includes its sub‐<br />
contracted fleet, which varies from day to day. An estimated average of 9<br />
trucks per day has been used for the sub‐contracted component of TwoWay<br />
Vanguard’s fleet. Total number of vehicles = 1162<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 88
We will implement a multi‐pronged approach to emissions reductions, focusing on whatever best reduces<br />
environmental impact in a given location. Strategies include:<br />
� Fuel options – We will transition type of fuel used for vehicles where appropriate – especially from leaded to<br />
unleaded. Our 2007 goal is to switch at least two stations to unleaded fuel for any petrol vehicles (with an<br />
end 2009 goal of 100%). This significantly reduces emissions such as NOx, as well as CO2 and other emissions.<br />
� Route Optimization – We are aiming for a 5% reduction in driving<br />
delivery time in 2007 (and thus reduced emissions) where we are<br />
piloting our VTS and FMS initiatives. We have a 2009 target of 10%<br />
reduced driving time. We aim to implement the VTS route optimization<br />
technology in 9 stations in 2007.<br />
� Delivery timing optimization – We can further reduce driving time and<br />
fuel consumption by further reducing operations during peak hours, and<br />
other creative approaches<br />
� Transition of vehicle fleet – We aim to transition the type of vehicles leased and owned towards LEV (low‐<br />
emission vehicles) ULEV (ultra‐low emission vehicles), SULEV (super‐ultra low emission vehicles) and other<br />
alternative fuel vehicles (such as PZEV – partial zero emission vehicles). Our 2007 goal is to upgrade 33% our<br />
fleet at least one category, with an end 2009 goal of 50% of the fleet at Euro 4 or higher. As a starting point<br />
this year we will be collecting data to determine the existing European emissions ranking of each vehicle in<br />
our fleet (e.g., Euro 4). We will also purchase two hybrid electric vehicles in 2007, and aim to reach a<br />
minimum of 10 by end 2009.<br />
� Airline selection – We will begin to explore how best to assess and integrate airline fuel efficiency into<br />
routing decision‐making<br />
� Optimize maintenance and care of vehicles, and encourage fuel‐saving driver behavior<br />
As part of our emissions control program, we aim to focus on reducing<br />
vehicle emissions that contribute to urban air pollution, such as NOx and SOx.<br />
We currently do not have any data on these emissions. However, we aim to<br />
establish baselines in the coming months, and then work aggressively with<br />
the goal of 15% reduction in NOx and SOx emissions in 2007 and 50% by end<br />
of 2009.<br />
� Emissions‐related impacts – Indirect energy consumption<br />
We are currently working to establish baseline data for energy consumed by offices, warehouses, and other such<br />
requirements, and we will post these on our website as soon as they are available. In 2007 we aim to make<br />
enhancements including energy intensity of lighting, and encourage smart power consumption and conservation as<br />
appropriate. We recognize that we can also take significant steps to reduce electricity intensity as we design future<br />
infrastructure requirements.<br />
� Our other environmental impacts: Reducing, re‐using, recycling, and green design<br />
While emissions reduction will be our number one environmental focus, creating a culture of sustainability means<br />
systematically reducing all of our environmental impacts.<br />
Water consumption: Water is a limited resource in great demand in<br />
many of the places where we operate. While our water consumption<br />
on the whole is relatively small compared to our operations, there is<br />
an opportunity to significantly reduce our impact. We also intend to<br />
reduce any chemicals that end up in our waste water from the<br />
washing of our vehicles, by introducing an environmentally friendly<br />
cleaner across our fleet network. In 2007 we aim to reduce water<br />
consumption by 5%. Approximate data was gathered form 31 stations<br />
representing 72% of revenue, as some stations still pay the utilities as<br />
part of the rent expenses.<br />
2004<br />
2005<br />
<strong>2006</strong><br />
Potential transfer of fleet<br />
towards lower emission vehicles<br />
In 2007 we will:<br />
� Upgrade 33% of our fleet at<br />
least one category<br />
� Purchase 2 hybrid vehicles<br />
Direct Energy: 14 stations using<br />
only Unleaded fuel across the<br />
Middle East, Gulf, Europe, and Asia<br />
Beirut, Abu Dhabi, Dubai, Jeddah,<br />
Kuwait, Riyadh, Dhahran, Muscat,<br />
Tehran, Athens, Montreal, Istanbul,<br />
London, Hong Kong<br />
Approximate Water Consumption<br />
(in liters)<br />
31 stations representing 72% of<br />
revenue<br />
463,890<br />
563,930<br />
957,957<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 89
Materials purchases – Reducing, Re‐using, and Recycling: Some of the materials we regularly purchase, and their<br />
quantities in weight, are captured in the following table. Currently, essentially all of this weight also translates into<br />
waste.<br />
� Plastic: We have only just begun to re‐use some of our<br />
plastic bags. This has the multiple effects of reducing<br />
our waste, increasing our recycling, and increasing the<br />
recycled input content of our product. However, this<br />
currently makes up an immaterial amount of our<br />
orders of this material, but is a practice that we can<br />
build further on. It also has created significant interest<br />
in how we can reduce the overall environmental<br />
impact of our packaging. In 2007 we will begin<br />
exploring options for increasing recycled content in<br />
our packaging, reducing plastic weight per package<br />
while maintaining durability, alternatives to<br />
conventional plastic, and options for wide‐scale plastic<br />
recycling.<br />
� Paper: With are implementing an electronic signature<br />
system, of which one environmental benefit is that we<br />
expect to be able to reduce our ‘run‐sheet’ paper<br />
usage by 70% by 2008. We furthermore intend to<br />
increase mindfulness about reducing printing and<br />
paper usage, and we will begin recycling paper in our<br />
offices where recycling facilities exist in the country.<br />
Hazardous Waste: The table on the right presents total hazardous<br />
waste shipments, with respect to our Freight Business. We are not<br />
permitted by international laws to ship hazardous materials using our<br />
Express service and thus our Express hazardous shipments are zero. We<br />
are exceptionally cautious with regard to handling hazardous waste.<br />
These shipments are handled as per the International Air Transport<br />
Association (IATA) regulations. We have 21 stations certified to IATA.<br />
Hazardous shipments require a certified person to handle dangerous goods at each station. Dangerous goods must<br />
also be inspected by designated institutes to issue a certificate for shipping. For example, in Jordan it is the Royal<br />
Scientific Society. We had no environmental incidents relating to the handling of these shipments.<br />
Environmental Fines: To our knowledge, we paid no significant fines in 2004, 2005, or <strong>2006</strong> for non‐compliance with<br />
any regulations associated with environmental issues.<br />
Key Area: Innovative ‘<strong>Sustainability</strong> Services’<br />
Materials<br />
Purchased<br />
(not all<br />
materials)<br />
Last 4 months of<br />
<strong>2006</strong>*<br />
Weight (kg)<br />
Estimated<br />
<strong>2006</strong><br />
HAWB (House<br />
Air Waybill)<br />
25585 75250<br />
Bags 17562 51652<br />
Boxes 30903 90892<br />
Envelops 29730 87441<br />
Flyers 32450 95441<br />
Labels 658 1936<br />
Seals 484 1423<br />
Stickers 148 437<br />
Tapes 2256 6634<br />
* Representing 34% of annual revenue. This data is gathered<br />
by the Stock Management System implemented for the last<br />
four months of <strong>2006</strong>. Estimated kg for the rest of the year<br />
has been determined based on these four months’<br />
percentage of total <strong>2006</strong> revenue.<br />
Perhaps the most exciting element of our anticipated journey towards sustainability is the opportunity to create<br />
innovative products and services that are based on sustainability principles; that create awareness and enable our<br />
clients to move towards sustainability; and that enable our own transition to sustainability. There are two lines of<br />
‘sustainability services’ that we wish to immediately pursue:<br />
Carbon neutral shipping services: With this anticipated service, customers can purchase a transportation option that<br />
will have zero net greenhouse gas or carbon emissions. We will ensure that we have adequate ‘clean’ capacity within<br />
our <strong>Aramex</strong> system to offset the amount of greenhouse gas emissions normally produced by the package in question.<br />
This allows us to: invest the revenue from these services directly into our transition to a green fleet, thereby also<br />
making this transition a market‐based transition; and gives us the flexibility to invest our limited resources in the<br />
area of our fleet most likely to make a major difference in terms of greenhouse gas reductions (even if not directly<br />
related to the routing of the package in question). In 2007 we aim to establish the foundations for implementing this<br />
service in the near future.<br />
Year<br />
Total Hazardous<br />
Shipments<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 90<br />
Total<br />
weight (kg)<br />
2004 115 33773<br />
2005 187 233043<br />
<strong>2006</strong> 160 45065
Creative solutions for sustainable cities: As noted in our section on traffic and congestion, we want to be part of the<br />
solution in terms of reducing traffic congestion, urban air pollution, urban noise, and other ailments of today’s cities<br />
that we contribute in a small way to. As an example of a new technique we have used to mitigate our impact, in<br />
Dubai we are now using the water canal for delivering our shipments, thereby not contributing to the serious traffic<br />
challenges in downtown Dubai. We aim to join dialogues with key cities on how to design more sustainable cities,<br />
while ensuring the continued or accelerated flow of goods and services and economic, social, and environmental<br />
development. For example, we are in a dialogue with the city of Cairo. We believe there are a lot of creative means<br />
to dramatically contribute to improved quality of life in cities, and that we can help contribute to these solutions and<br />
help to design new transportation services to support these creative approaches. We need not be limited by current<br />
ways of doing business, and current ways of building cities. We aim to introduce at least one new innovation in the<br />
marketplace during 2007.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 91
CATALYZING SUSTAINABILITY<br />
Our Perspective<br />
We believe we have an important role to play in catalyzing sustainability<br />
among some of our key networks, including companies in the MENA<br />
and Gulf regions and companies in the Global Distribution Alliance.<br />
We believe we will be rewarded in terms of performance gains,<br />
public reputation, and an increased customer base and loyalty.<br />
Long-Term Strategic Goal<br />
We will be the sustainability performance and reporting leader in the<br />
MENA and Gulf region, and will ultimately earn our way into the ranks<br />
of the world’s top corporate sustainability leadership companies.
Inside this Section:<br />
� Catalyzing <strong>Sustainability</strong> Where We Operate Page 94<br />
<strong>2006</strong> Highlights 2007 Goals 2009 Goals<br />
� Played a key supporting role in<br />
the first full year of operations of<br />
the Arab Foundation for<br />
Sustainable Development<br />
� Launch our <strong>Sustainability</strong> <strong>Report</strong><br />
as a regional leadership example<br />
� Establish two <strong>Sustainability</strong><br />
Excellence Leadership Forums –<br />
one for leadership companies in<br />
the Middle East, North Africa,<br />
and Gulf; one for the GDA<br />
� Be the sustainability performance<br />
and reporting leader, as ranked<br />
by public opinion, sustainability<br />
indices, and relevant major<br />
international sustainability<br />
rankings<br />
� Engage at least 20 other<br />
companies plus GDA members in<br />
<strong>Sustainability</strong> Excellence<br />
Leadership Forums<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 93
Catalyzing <strong>Sustainability</strong> Where We Operate<br />
While we aim to strengthen our reputation as a global company, and aim to become a global sustainability leader<br />
over the long‐term, we recognize a short term opportunity to make a major contribution to the broader uptake of<br />
sustainability management and reporting in two key areas:<br />
� In the Middle East, North Africa and Gulf region<br />
� Together with our partners in the Global Distribution Alliance<br />
We aim to establish two separate <strong>Sustainability</strong> Excellence Leadership Forums, one for each of the networks above.<br />
These Forums will offer an opportunity for all participating companies to learn from one another and share<br />
experiences with regard to sustainability uptake and implementation.<br />
� Catalyzing <strong>Sustainability</strong> in the Middle East, North Africa and the Gulf<br />
To our knowledge, we are one of the first companies to undertake sustainability reporting in the MENA and Gulf<br />
regions. However, we believe that the adoption of sustainability management will become an attractive and critically<br />
important central theme of business management in the region within only a few years. We aim to accelerate this<br />
trend and push its boundaries by joining together with other leadership companies who understand the value<br />
opportunity of sustainability management and are eager to be a leader with respect to securing both performance<br />
and reputation gains. By the end of 2007 our goal is to have launched a regional <strong>Sustainability</strong> Excellence Group with<br />
at least 6‐8 other leadership companies, and to have hosted an initial quarterly meeting forum.<br />
� Integrating <strong>Sustainability</strong> in the Global Distribution Alliance<br />
The partners in the GDA will be at different stages in the implementation of sustainability. As noted in the GDA<br />
section, in 2007 we hope to establish a <strong>Sustainability</strong> Excellence framework and forum for experience sharing and<br />
joint learning in order to accelerate the adoption of sustainability management by the members of the GDA. Over<br />
time, this will significantly reduce the shared carbon intensity of our services. We hope that by 2009, we will have<br />
successfully encouraged full tracking of greenhouse gas emissions among GDA partners, and have contributed to a<br />
significant reduction in emissions per shipment across the GDA (the target is still to be determined in consultation<br />
with GDA).<br />
We believe that playing a leadership role in the establishment and implementation of these two innovative groups<br />
will significant enhance not only our performance, but also enhance our reputation as a sustainability leader and<br />
increase our customer base and customer loyalty in the MENA and Gulf regions and internationally.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 94
Looking Forward ‐ Summary of Commitments<br />
Key Issue Key Area and 2007 Goals 2009 Goals<br />
Economic<br />
Growth<br />
Customer<br />
Relationships<br />
Human<br />
Resources<br />
Health and<br />
Safety<br />
Achieve continued growth and recognition<br />
� Growth in revenue of 18%<br />
� Growth in profitability of 20%<br />
Our Customer Relationships<br />
� Maintain 95% in customer satisfaction<br />
� Maintain 95% in on‐time delivery rate<br />
� Build capacity of frontline personnel across the<br />
network<br />
� Increase customer tools access through<br />
aramex.com, PACK, and ePOD<br />
� Increase Sage Accpac CRM development and<br />
utilization<br />
� Structuring Contact Center processes,<br />
applications and procedures<br />
� Conduct customer survey<br />
Putting <strong>Sustainability</strong> at the heart of <strong>Aramex</strong><br />
culture<br />
� Implement corporate‐wide training on<br />
<strong>Sustainability</strong><br />
� Establish global network of champions<br />
� Integrate into performance appraisals<br />
Engaging Employees<br />
� Use AccountAbility1000 Stakeholder<br />
Engagement Standard to enhance quality of<br />
engagement<br />
Opportunities for Development<br />
� Launch of <strong>Aramex</strong> Corporate University<br />
� 20 average hours training per employee<br />
� 13% women in middle management<br />
Global Workplace Conditions<br />
� Conduct a review of our labor performance<br />
against the SA8000<br />
Employee Satisfaction<br />
� Establish Employee Satisfaction Index<br />
� Enhance benefits and address any gaps in<br />
benefits across all stations<br />
Create a Safety Culture<br />
� Establish H&S Index to measure degree to<br />
which safety is equated to corporate culture<br />
Health and Safety Management Systems<br />
� Design and implement H&S management<br />
system based on OHSAS18000<br />
� Begin tracking of H&S KPIs<br />
Achieve Dramatic Performance<br />
Improvement<br />
� Significantly expand H&S training (both road<br />
safety and warehouse safety)<br />
� Undertake warehouse safety equipment audit<br />
� Establish a baseline accident rate per‐<br />
� To be recognized as the 5 th global logistics<br />
and express transportation company by 2010<br />
� Positioning <strong>Aramex</strong> as the company of choice<br />
� Exceed 95% in customer satisfaction for all<br />
products and services.<br />
� Exceed 95% in on‐time delivery rate for all<br />
products and services<br />
� Have sustainability recognized as overall<br />
management framework<br />
� <strong>Aramex</strong> ‘Culture of <strong>Sustainability</strong>’ is well‐<br />
known throughout the region<br />
� Accelerated rate of innovation<br />
� Be in a position to assure quality of<br />
engagement against AA1000<br />
� 40 average hours training per employee, with<br />
100% coverage<br />
� Women in management: 10% senior, 20%<br />
middle, 25% leaders<br />
� All stations capable of successful certification<br />
against SA8000, with regular internal<br />
monitoring – This extends to major sub‐<br />
contractors<br />
� 80% average of ‘Excellent’ score in<br />
satisfaction survey<br />
� Secure a Top 10 ranking in any external ‘Best<br />
Places to Work’ surveys in the Middle East<br />
� Achieve 80% average ‘Excellent’ score on<br />
H&S Index<br />
� Be capable of certification against to<br />
OHSAS18001<br />
� 50% reduction in accident rate<br />
� 50% reduction in lost‐time frequency rate<br />
� 0 fatalities<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 95
Traffic,<br />
Noise, and<br />
Healthy<br />
Cities<br />
Investment<br />
in Society<br />
shipment, and achieve 10% reduction<br />
� Establish baseline lost‐time injury rate and<br />
achieve 10% reduction<br />
� 0 Fatalities<br />
Reduce Noise Impact<br />
� Begin systematic tracking of noise complaints<br />
and develop policy<br />
� Commitment to move Abu Dhabi outgoing<br />
operations center in response to community<br />
input<br />
Ensure Safe and Courteous Driving<br />
� Implement systematic tracking of complaints<br />
against couriers and solutions undertaken;<br />
establish baseline performance<br />
Reduce road congestion and driving time<br />
� Implementation of Route Optimization<br />
technology in pilot stations<br />
� 5% reduction in driving delivery time in pilot<br />
stations<br />
Reduce Emissions<br />
� Establish baseline measures for NOx and other<br />
road fleet emissions per shipment, and achieve<br />
15% reduction, as per environment section<br />
Amount of contributions and geographical<br />
distribution<br />
� 1% of pre‐tax profits donated annually<br />
� Significant increase in the geographic<br />
distribution of funds<br />
Focus on theme of ‘Reducing<br />
Marginalization through Inclusion and<br />
Empowerment’. Includes sub‐themes of<br />
Youth Empowerment; Sustainable<br />
Community Investment; and Emergency<br />
Relief<br />
� Positively impact 100,000 marginalized people<br />
and families<br />
� Youth Empowerment: 180 young people<br />
significantly impacted<br />
� Sustainable Community: Continued financial<br />
and in‐kind investment in Jabal Al‐Natheef<br />
pilot initiative<br />
� Emergency Relief: Respond to major<br />
emergencies with campaigns to leverage<br />
support and contributions, coordinated<br />
shipping, and on‐the‐ground logistics support<br />
Implement a model for categorizing,<br />
managing and measuring impact and<br />
performance of our investment in society<br />
� Strengthen our model using the London<br />
Benchmarking Group model<br />
� Improved ability to measure our impacts:<br />
Determine best means to measure impact at<br />
Jabal Al‐Natheef, and begin tracking<br />
� 50% reduction in related community<br />
complaints<br />
� 50% reduction in related community<br />
complaints<br />
� 10% reduction in driving delivery time<br />
� Participation in multiple ‘sustainable city’<br />
dialogues, and development of at least 2<br />
corresponding innovative services<br />
� 50% reduction in NOx and other road fleet<br />
emissions per package, as per environment<br />
section<br />
� 1% of pre‐tax profits donated annually<br />
� Alignment within 10% of revenue<br />
distribution, with the exception of greater<br />
weighting for regions with greatest need<br />
� Positively impact 300,000 marginalized<br />
people and families<br />
� Youth Empowerment: Increase impact by<br />
10% per year (300 young people in 2009 and<br />
3‐year total of 500)<br />
� Sustainable Community: Apply lessons<br />
learned with Jabal Al‐Natheef pilot initiative<br />
to a wider range of initiatives across the<br />
countries where <strong>Aramex</strong> operates<br />
� Emergency Relief: Expand use of our core<br />
competencies to support chronic<br />
emergencies and marginalized populations<br />
� Our ‘Investment in Society’ plan, actions, and<br />
measures can be audited against the LBG<br />
� Established measurement of our “Investment<br />
in Society’ impacts, and measured year‐over‐<br />
year performance improvements<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 96
Business<br />
Partners and<br />
GDA<br />
Climate<br />
change,<br />
environment,<br />
and<br />
<strong>Sustainability</strong><br />
Innovation<br />
Catalyzing<br />
<strong>Sustainability</strong><br />
Enhanced reach through the GDA<br />
� Continued role as ‘operations manager’ for<br />
the GDA<br />
� Launch and coordinate a <strong>Sustainability</strong><br />
experience sharing and training forum for the<br />
GDA<br />
Create a <strong>Sustainability</strong> Innovation Culture<br />
� Establish a <strong>Sustainability</strong> Innovation Index to<br />
measure degree to which innovation is linked<br />
to sustainability considerations<br />
Establish Environmental Management<br />
System (EMS)<br />
� Design and implement EMS based on<br />
ISO14000<br />
� Begin tracking of environmental KPIs<br />
� Significantly expand environment‐related<br />
training<br />
Achieve Dramatic Performance<br />
Improvement<br />
Emissions‐related:<br />
� Reduce Emissions: 15% reduction per<br />
shipment (includes NOx, others)<br />
� Reduce Fuel Consumption: 5% reduction per<br />
shipment<br />
� Reduce driving time: 5% reduction<br />
� Transition type of vehicle fuel used: Transition<br />
at least 2 stations from leaded to unleaded<br />
� Transition of vehicle fleet towards LEV (lower‐<br />
emission vehicles), ULEV, SULEV and other<br />
alternative fuel vehicles (such as PZEV):<br />
� Upgrade 33% of fleet one category<br />
� Purchase or lease 2 hybrid electric vehicles<br />
Reduce, Re‐use, Recycle:<br />
� Increase recycling of packaging and recycled<br />
content, and set end 2009 targets<br />
� Reduce water consumption by 5%<br />
� Reduce paper consumption by 5% and achieve<br />
10% paper recycling<br />
Develop Innovative ‘<strong>Sustainability</strong> Services’<br />
� Take initial steps towards development of ‘low<br />
carbon’ and ‘carbon neutral’ shipping services<br />
� Identify top ‘sustainability service’<br />
opportunities related to reducing traffic<br />
impacts helping shape ‘Sustainable Cities’, and<br />
introduce at least one innovation<br />
� Launch our <strong>Sustainability</strong> <strong>Report</strong> as a regional<br />
leadership example<br />
� Establish two <strong>Sustainability</strong> Excellence<br />
Leadership Forums – one for leadership<br />
companies in the Middle East, North Africa,<br />
and Gulf; one for the GDA<br />
� Have successfully encouraged full tracking of<br />
greenhouse gas emissions among GDA<br />
partners<br />
� Have contributed to a significant reduction in<br />
emissions per shipment across the GDA<br />
� Achieve 80% average ‘Excellent’ score on<br />
<strong>Sustainability</strong> Innovation Index<br />
� All stations capable of certification against<br />
ISO14001<br />
Emissions‐related:<br />
� Reduce Emissions: 50% reduction per<br />
shipment (includes NOx, others)<br />
� Reduce Fuel Consumption: 20% reduction<br />
per shipment<br />
� Reduce driving time: 10% reduction<br />
� Transition fuel type: 100% transition from<br />
leaded to unleaded<br />
� Transition of fleet towards LEV, ULEV, SULEV<br />
and other alternative fuel vehicles (e.g.,<br />
PZEV)<br />
� 50% of fleet at Euro 4 or higher<br />
� Minimum of 10 hybrid electric vehicles<br />
Reduce, Re‐use, Recycle:<br />
� Achieve 2009 targets for recycling of<br />
packaging and recycled content<br />
� Reduce water consumption by 20%<br />
� Reduce paper consumption by 25% and<br />
achieve 90% paper recycling<br />
� 2% of revenues from carbon neutral services<br />
� 2% new successful ‘Sustainable City’ services<br />
� Be the sustainability performance and<br />
reporting leader, as ranked by public opinion,<br />
sustainability indices, and relevant major<br />
international sustainability rankings<br />
� Engage at least 20 other companies plus GDA<br />
members in <strong>Sustainability</strong> Excellence<br />
Leadership Forums<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 97
Independent Assurance<br />
We consider third‐party assurance to be important to the credibility of our sustainability reporting. We have sought<br />
two forms of third party review for this report – a limited sustainability assurance by Ernst and Young, and a review<br />
of our self‐declared GRI rating by the GRI itself.<br />
We treat the accuracy and reliability of our data very seriously, as well as the materiality of the issues chosen in our<br />
reporting. As we continue to develop our sustainability management, management systems, and reporting, we<br />
expect to continuously increase the comprehensiveness of the audit.<br />
We look forward to working on addressing the recommendations provided by Ernst and Young in the coming year.<br />
We are also aiming in our 2007 <strong>Sustainability</strong> <strong>Report</strong> to achieve an A+ rating as per the GRI rating system.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 98
GRI Index (G3)<br />
Supporting Resources<br />
We have self‐declared this report at Level B+, having received third party verification from Ernst and Young and<br />
having had GRI check the report. The following GRI Index includes all Core Indicators, all Additional Indicators, and all<br />
indicators from the Logistics and Transportation Sector Supplement.<br />
� Fully covered GRI indicators<br />
GRI Page(s) GRI Page(s) GRI Page(s)<br />
1.1 13-14 Overall Management<br />
Approach Disclosure<br />
1.2 18-19 EC Management Approach Disclosure<br />
p.25-27 LA13 Board of Directors breakdown: 20<br />
Workforce breakdown by gender:<br />
54<br />
Workforce breakdown by age: 46<br />
HR Disclosure on Management<br />
p.25<br />
Approach p. 26-27<br />
2.1 9 EC1 30-33 HR1 0%<br />
2.2 5-7 EC2 30 HR3 None or minimal<br />
2.3 8,10 EC3 <strong>Aramex</strong> has no defined benefit plan<br />
obligations because retirement plans<br />
are typically government managed.<br />
<strong>Aramex</strong> complies with government set<br />
rules and regulations concern<br />
contributions for employees.<br />
HR4 55<br />
2.4 8-9 EC4 0 HR5 26-27, 55<br />
2.5 5 EC6 34 HR6 55<br />
2.6 9 EC7 34 HR7 55-56<br />
2.7 5, 6, 32 EC8 None from direct business operations.<br />
Some in-kind and pro-bono<br />
contributions as per p. 76<br />
HR8 0%<br />
2.8 Number of employees p.45, 46,<br />
56<br />
EC9 30 HR9 Not relevant<br />
2.8 Net sales p. 31 EN Management Approach Disclosure<br />
p.25<br />
2.8 Total capitalization p.8 EN2 0% SO Disclosure on Management<br />
Approach p.27<br />
2.8 Quantity of products/services EN5 No energy saved as no initiatives, SO1 66-70<br />
sold p.30<br />
excluding Two Way. New initiatives<br />
and any existing Two Way initiatives<br />
will be included in next report.<br />
2.9 7-9 EN6 87-89 SO3 21, 24<br />
2.10 9 EN7 No initiatives, excluding Two Way. SO4 No incidents brought to attention<br />
New initiatives and any existing Two<br />
Way initiatives will be included in next<br />
report.<br />
in <strong>2006</strong><br />
3.1 20 EN9 No water sources significantly<br />
affected.<br />
SO5 21-24<br />
3.2 20 EN10 (0) SO6 (0) 24<br />
3.3 20 EN11 Not relevant / not material SO7 (0) 24<br />
3.4 20 EN12 Not relevant / not material SO8 (0) No significant fines. p.24<br />
3.5 Determining materiality: 10,11 EN13 Not relevant / not material<br />
3.5 Prioritizing topics in report : EN14 Not relevant / not material PR Disclosure on Management<br />
10, 11<br />
Approach p.27<br />
3.5 Identifying stakeholders : 16, 17 EN15 Not relevant / not material PR2 64<br />
3.5 Guidance on report content : 9-<br />
11<br />
EN18 85-86, 87-89 PR4 (0)<br />
3.6 9-11 EN24 90 PR5 38-41<br />
3.7 9-11 EN25 Not relevant / not material PR7 (0)<br />
3.8 11-12 EN26 90-91 PR8 (0) 41<br />
3.9 11-12 EN27 (0%) 90 PR9 (0) 41<br />
3.10 Not relevant for first report EN28 (0) 90<br />
3.11 Not relevant for first report EN30 (0) Excluding Two Way. This will GRI Logistics and Transportation<br />
change significantly in 2007, to be<br />
reported in next sustainability report.<br />
Sector Supplement<br />
3.12 99 LA Disclosure on Management Approach LT1 88-89. We have 1 boat operating<br />
p.26-27<br />
within city of Dubai. It is<br />
registered in Dubai with Dubai<br />
Port’s World. It does not require<br />
registration in a shipping registry<br />
as this boat cannot go into deep<br />
sea.<br />
3.13 10, 96-98 LA1 45-46 LT2 88-89<br />
4.1 20 LA6 (0%) Managers are responsible for LT3 87-90 including:<br />
overall safety. There are currently no<br />
Policies, systems: 85-87<br />
committees.<br />
Hybrids: 89<br />
Modal shift: 86-87, 89-90<br />
Route planning: 86-89<br />
4.2 20 LA8 None. LT4 None<br />
4.3 20 LA9 None. LT5 69, 86, 87-91<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 102
� Fully covered GRI indicators (continued)<br />
GRI Page(s) GRI Page(s) GRI Page(s)<br />
4.4 Shareholder resolutions: 20 LA11 Not relevant in the context of no layoffs<br />
/ no downsizing<br />
LT6 69, 86-89<br />
4.4 Informing/consulting<br />
employees: 20<br />
LT7 68<br />
4.5 For Board of Directors: 20 LT8 Not relevant<br />
4.5 For Executives: 20 LT8 Not relevant<br />
4.6 20 LT13 Not relevant<br />
4.7 20 LT15 78<br />
4.8 2, 20-21<br />
4.9 20<br />
4.10 20<br />
4.11 22<br />
4.12 21-22<br />
4.13 23<br />
4.14 16, 17<br />
4.15 16<br />
4.16 16, 17<br />
4.17 16, 17<br />
� Partially covered GRI indicators<br />
GRI Page(s) GRI Page(s) GRI Page(s)<br />
EC5 34 LA5 No such minimum periods. <strong>Aramex</strong><br />
makes every effort to offer reasonable<br />
and fair time in the case of a relevant<br />
issue.<br />
EN1 90 LA7 Work-related fatalities: 64 SO2 24<br />
EN22 Weight of waste is currently<br />
equivalent to weight of<br />
materials used (EN1).<br />
LA7 Number of injuries p.64. Will be<br />
reported more fully in 2007<br />
<strong>Sustainability</strong> <strong>Report</strong><br />
LA2 56 LA7 Absenteeism rates: 57 LT12 64<br />
LA4 No <strong>Aramex</strong> employees are<br />
members of a company union.<br />
Many are members of national<br />
trade unions.<br />
LA10 52-53<br />
� Future coverage GRI indicators<br />
HR2 We have agreements in place<br />
with our subcontractor in India<br />
that insist on compliance with our<br />
policies on child labor, forced<br />
labor, etc.<br />
PR3 One type of labeling relates to<br />
hazardous waste: 89-91<br />
GRI Page(s) GRI Page(s) GRI Page(s)<br />
EN3 Will be reported online before EN23 Will be reported in 2007 <strong>Sustainability</strong> LT9 As relevant, will be reported in<br />
end of Q3 2007<br />
<strong>Report</strong><br />
2007 <strong>Sustainability</strong> report<br />
EN4 Will be reported online before EN29 Will be reviewed, and to extent LT10 Only a handful of our couriers<br />
end of Q3 2007<br />
relevant, will be integrated into 2008<br />
travel long distances. Indicator<br />
<strong>Sustainability</strong> <strong>Report</strong><br />
will be reviewed and to extent<br />
relevant, will be integrated into<br />
2007 or 2008 <strong>Sustainability</strong> report<br />
EN8 Will be reported in 2007 LA3 Will be reported in 2007 <strong>Sustainability</strong> LT11 Will be reported in 2007<br />
<strong>Sustainability</strong> <strong>Report</strong><br />
<strong>Report</strong><br />
<strong>Sustainability</strong> <strong>Report</strong><br />
EN16 Will be reported online before LA12 Will be reported in 2007 <strong>Sustainability</strong> LT14 As relevant, will be reported in<br />
end of Q3 2007<br />
<strong>Report</strong><br />
2007 <strong>Sustainability</strong> report<br />
EN17 Will be reported in 2007 LA14 Will be reported in 2007 <strong>Sustainability</strong><br />
<strong>Sustainability</strong> <strong>Report</strong><br />
<strong>Report</strong><br />
EN19 Will be reported in 2008 PR1 Will be reported in 2007 <strong>Sustainability</strong><br />
<strong>Sustainability</strong> <strong>Report</strong><br />
<strong>Report</strong><br />
EN20 Will be reported online before PR6 Will be reported in 2007 <strong>Sustainability</strong><br />
end of Q3 2007<br />
EN21 Will be reported online before<br />
end of Q3 2007<br />
<strong>Report</strong><br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 103
Glossary<br />
UN Global Compact "United Nations Global Compact" is an initiative to encourage businesses worldwide to adopt<br />
sustainable and socially responsible policies, and to report on them. Under the Compact, companies<br />
are brought together with UN agencies, labor groups and civil society.<br />
AccountAbility1000 (AA1000) series are principles based standards intended to provide the basis for improving the<br />
sustainability performance of organizations. The AA1000 Framework was developed to help<br />
organizations build their accountability and social responsibility through quality social and ethical<br />
accounting, auditing and reporting. It addresses the need for organizations to integrate their<br />
stakeholder engagement process into their daily activities.<br />
ISO9001:2000 is intended for use in any organization which designs, develops, manufactures, installs and/or<br />
services any product or provides any form of service. It provides a number of requirements which an<br />
organization needs to fulfill if it is to achieve customer satisfaction through consistent products and<br />
services which meet customer expectations.<br />
ISO14000 A set of international Environmental management standards that brings a world‐wide focus to the<br />
environment, encouraging a cleaner, safer, healthier world for us all. As part of the ISO standards,<br />
ISO14000 exists to help organizations minimize how their operations negatively affect the<br />
environment (cause adverse changes to air, water, or land), comply with applicable laws,<br />
regulations, and other environmentally oriented requirements.<br />
OHSAS18000 is an international occupational health and safety management system specification that helps<br />
organizations to control occupational health and safety risks.<br />
Social Accountability<br />
8000<br />
London Benchmarking<br />
Group<br />
SA8000 is promoted as a voluntary, universal standard for companies interested in auditing and<br />
certifying labor practices in their facilities and those of their suppliers and vendors.<br />
LBG is a group of over 100 companies working together to measure Corporate Community<br />
Investment (CCI). The LBG model provides a comprehensive and consistent set of measures for CCI<br />
professionals to determine their company's contribution to the community, and to also capture the<br />
outputs and longer‐term impacts of CCI projects on society and the business itself.<br />
Carbon dioxide is a chemical compound often referred to by CO2, and is present in the Earth's atmosphere.<br />
Carbon‐constrained<br />
economy<br />
(or carbon‐restricted economy) is an economy which has to deal with the future effects of global<br />
warming and constraints on the emissions of greenhouse gases.<br />
Carbon neutral Carbon neutral is relating to the maintenance of a balance between producing and using carbon,<br />
especially balancing carbon‐dioxide emissions by certain activities and through adapting an audit<br />
system is an effective means of accounting for greenhouse gas control efforts. It establishes that the<br />
claimed reductions in emissions, or carbon sequestration, has actually occurred and is stable.<br />
Climate Change describes changes in the variability or average state of the atmosphere over time scales ranging<br />
from decades to millions of years.<br />
Global Warming is the increase in the average temperature of the Earth's near‐surface air and oceans in recent<br />
decades and its projected continuation.<br />
Greenhouse Gas (GHG) is a component of the atmosphere that contribute to the Greenhouse effect, some occur naturally<br />
and others are a result from Human activities.<br />
<strong>Sustainability</strong> is an attempt to provide the best outcomes for the human and natural environments both now and<br />
into the indefinite future.<br />
<strong>Sustainability</strong><br />
management<br />
is the integrated management of our economic, environmental, and social performance in a manner<br />
that optimizes value for all of our stakeholders.<br />
<strong>Sustainability</strong> reporting is an ongoing testimony of your commitment towards sustainable development.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 104
Global <strong>Report</strong>ing<br />
Initiative (GRI)<br />
is a long‐term, multi‐stakeholder, international process whose mission is to develop and disseminate<br />
globally applicable <strong>Sustainability</strong> <strong>Report</strong>ing Guidelines.<br />
G3 <strong>Report</strong>ing Guidelines are a framework for reporting on an organization's economic, environmental, and social<br />
performance.<br />
General Services Office<br />
(GSO)<br />
Global Distribution<br />
Alliance<br />
is the company’s Headquarters Office in Amman, Jordan.<br />
is a partnership of over 40 leading logistics and transportation companies. With operations<br />
throughout the world, the GDA is strategically positioned to provide swift and reliable global<br />
transportation solutions, with each member of the alliance providing an extensive coverage and<br />
expertise in each region of the world.<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 105
AA1000 AccountAbility 1000<br />
Acronyms<br />
AA1000SES AccountAbility 1000 Stakeholder Engagement Standard<br />
AA1000AS AccountAbility 1000 Assurance Standard<br />
CO2<br />
Carbon dioxide<br />
CRM Customer Relationship Management<br />
CSR Corporate Social Responsibility<br />
G3 The G3 version of the GRI <strong>Sustainability</strong> <strong>Report</strong>ing Guidelines<br />
GDA Global Distribution Alliance<br />
GHG Greenhouse Gas<br />
GRI Global <strong>Report</strong>ing Initiative<br />
GSO General Services Office<br />
H&S Health and Safety<br />
IATA International Air Transport Association<br />
ISO9001:2000 International Organization for Standardization generic management systems standard for quality<br />
management<br />
ISO14000 International Organization for Standardization generic management systems standard for<br />
environmental management<br />
KPI Key Performance Indicator<br />
LEV Low Emission Vehicle<br />
LBG London Benchmarking Group<br />
NOx Nitrogen Oxides<br />
RG <strong>Report</strong>ing Guidelines (the G3 version of GRI RG)<br />
OHSAS18000 Occupational Health and Safety Assessment Series 18000, an international occupational health and<br />
safety management system specification (also OHSAS18001)<br />
PZEV Partial Zero Emission Vehicle<br />
SA8000 Social Accountability 8000<br />
SOx<br />
Sulfur Oxides<br />
SULEV Super Ultra‐Low Emission Vehicle<br />
ULEV Ultra‐Low Emission Vehicle<br />
QSA Quality Safety Audits<br />
<strong>Aramex</strong> <strong>Sustainability</strong> <strong>Report</strong> <strong>2006</strong> Page 106